Lincoln Minerals (ASX:LML) said on Tuesday (September 2) that it has successfully raised AU$1.5 million to advance its critical minerals projects.
A renounceable entitlement issue was first announced by the company on August 5, which outlined that it is open to all eligible shareholders who have a registered address within Australia or New Zealand, as well as those who hold shares on the record date, of August 8.
In addition, Lincoln said it has also agreed to undertake a follow-on placement amounting to AU$750,000, which will be used to accommodate excess demand and provide additional capital for project execution.
“Under the entitlement issue and follow-on placement, the company will issue a total of approximately 450.4 million new fully paid ordinary shares and 225.2 million new options exercisable at AU$0.01,” the company said, adding that these will expire on December 31, 2027.
“Strong demand” was cited by the company as the push behind a successful raise.
The funds shall be used in the development of Lincoln’s Eyre Peninsula, South Australia portfolio, including initial drilling at the Minbrie copper and base metals project, an exploration asset with an already confirmed large-scale mineralised system extending over a 7-kilometre strike length.
Partnering initiatives for the Green Iron magnetite project shall also continue through the funding.
Metallurgical studies and downstream testwork are currently ongoing at the company’s flagship Kookaburra graphite project and will also be covered under the capital raise.
Kookaburra is located 5 kilometres north of Port Lincoln. Its measured, Indicated and Inferred Resources are valued at 12.8 million tonnes at 7.6 percent total graphite content.
Besides the assets mentioned, Lincoln stated that the funds will also be allocated towards ongoing fieldwork across its uranium tenements, as well as for general corporate purposes and costs associated with inclined offers.
Drilling at Minbrie is scheduled to commence towards the end of 2025, while an updated feasibility study for stage one of Kookaburra is expected in 2027.
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Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.
