MTM has announced plans to raise a total of A$7m ($4.7m) through private placement and by issuing shares to its shareholders.

Under the two-tranche private placement, MTM aims to raise A$5m by issuing 62.5 million of its shares at A$0.08 each.

In the first tranche, the company will issue up to 19.9 million new shares to raise A$1.59m.

The second tranche, subject to shareholder approval, aims to raise A$3.41m through the issuance of 42.6 million new shares.

Additionally, the company plans to raise approximately A$2m through a share issue to its eligible shareholders, under an entitlement offer.

It will also conditionally place up to 31.25 million quoted options, subject to shareholder approval.

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By GlobalData

MTM managing director Lachlan Reynolds said: “We are very pleased with the strong level of demand for the placement, which has validated our recently announced acquisition of Flash Metals Pty Ltd (Flash), which includes 3 granted tenements in the West Arunta region adjacent to ground held by WA1 Resources Ltd (ASX:WA1) and Encounter Resources Ltd (ASX:ENR) and 2 granted exploration licences in Mukinbudin, which have potential for Niobium and Rare Earth Elements (REEs).

“Flash also holds an option to exclusively negotiate the rights to Flash Joule Heating technology developed by Rice University in Houston, USA, which has demonstrated the potential to treat REE mineralisation and more efficiently recover critical metals from critical metal-rich recycling and waste streams.”

Funds from the first tranche will support the company’s Pomme and East Laverton REE project, including metallurgical testing and working capital.

The Pomme project is located in Quebec, Canada, and has 43 mineral claims covering 2,400 hectares.

It is situated close to the carbonatite-hosted Montviel Deposit with a resource of 266 million tonnes at 1.45% total rare earth oxides.

The East Laverton project is a Western Australian gold project covering around 3,000km².

It sits close to the Laverton Greenstone Belt, which is home to Sunrise Dam with 10 million ounces (moz) of gold (Au), Wallaby with 8moz of Au and Granny Smith with 2.5moz of Au.