Australia’s WA1 Resources has secured firm commitments to raise A$40m ($26.2m) through a share placement to institutional, sophisticated and professional investors.

The funds raised are earmarked for drilling and exploration, process and project studies, permitting activities, as well as metallurgical test work at the West Arunta Project in Western Australia.

Additionally, the funds will cover administration and corporate costs, the costs of the placement and general working capital requirements.

WA1 will issue four million new shares at A$10 ($6.5) apiece.

This price marks a 5.5% discount to the 30-day volume weighted average price (VWAP) and a 10.2% discount to WA1’s last traded share price.

After the placement, WA1 Resources will have around 61.3 million shares on issue.

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Canaccord Genuity (Australia) is the sole lead manager for the placement, while MST Financial Services and Bell Potter Securities are the co-managers.

WA1 managing director Paul Savich said: “Successful completion of the placement leaves the company in its strongest financial position to date.

“With a significant number of assays from the 2023 drill campaign still outstanding we anticipate a steady flow of results being reported in the current quarter as we prepare to commence the 2024 field season.

“This additional funding supports the continuation of major de-risking and critical path activities for the West Arunta Project including metallurgical test work, process development planning and other project advancement activities. This work will progress alongside exploration and resource drilling, along with the estimation of an initial mineral resource for Luni in the June quarter of 2024.”