Boab Metals Limited (ASX: $BML) Capital Raising Announcement

Boab Metals Limited (ASX: $BML) has announced a fully underwritten capital raising of A$5.0 million to advance its Sorby Hills Lead-Silver-Zinc Project in Western Australia. The capital raising includes a share placement to institutional investors and a non-renounceable entitlement offer to eligible shareholders. The funds will be utilized for finalizing project financing, exploration drilling, and early site establishment works. The expected Closing Date for acceptance of the Entitlement Offer is 5.00pm (AWST) on 23 May 2024, subject to variation by the Company.

Boab Metals Chairman's Letter on Capital Raising

The purpose of the capital raising is to advance the Sorby Hills Project, conduct drilling campaigns, and provide general working capital. Shareholders have the option to take up their entitlement, apply for additional top-up shares, or allow their entitlement to lapse. The Company's intended use of proceeds and the potential dilution effect on shareholders are outlined. The announcement includes a letter from the Chairman, providing an overview of the capital raising and inviting shareholders to consider the investment opportunity.

Boab Metals Capital Raising Summary and Outlook

Boab Metals Limited (BML) has successfully completed a Placement, raising approximately $1.7 million through the issue of 17 million fully paid ordinary shares at an issue price of $0.10 per share. Additionally, the company has utilized its ATM subscription agreement to raise $185,000 through the set-off of company collateral shares. The funds raised will be utilized for advancing the Sorby Hills Project and general working capital purposes. The company's directors have committed to participating in the Entitlement Offer, and the company encourages existing shareholders to take up their rights under the offer. The announcement provides detailed information about the entitlement offer, including key dates, options available to shareholders, the underwriting agreement, and the allocation policy. It also outlines the effect of the offer on the company's capital structure, use of proceeds, substantial shareholders, director interests, potential dilution, and the impact on control.