Polymetals is celebrating the confirmation of a $35 million single-tranche placement as it works to restart the Endeavor silver-zinc mine in New South Wales.
The company will issue 43.75 million new shares at an issue price of $0.80 per new share to raise the $35 million.
Polymetals executive chair Dave Sproule said the company was grateful for the support.
“Our Endeavor restart activities remain on track and the Polymetals team look forward to commissioning the operation to become Australia’s next silver and zinc producer,” he said.
“Timing is particularly encouraging against the backdrop of strong (Australian dollar) zinc and silver prices and the favourable treatment terms currently available to zinc concentrate producers.”
Before closing in 2020, the Endeavor mine produced 32 million tonnes, including 92 million ounces of silver, 2.6 million tonnes of zinc, and 1.6 million tonnes of lead.
Polymetals is targeting an immediate restart of Endeavor.
“Alongside our measured approach to testing of the Carpark Prospect to the immediate south of the Endeavor mine, we have been building our exploration team with practical experienced staff to advance to testing high priority targets,” Sproule said.
“As well as strengthening the Polymetals balance sheet, funds from this raising will allow us to significantly step up the Company’s exploration activities and we look forward to updating the market on our exploration results.”
The placement is expected to settle on February 14. Once complete, Polymetals will launch into the next chapter of Endeavor.
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