Impact is raising up to $5.2 million to fund the development of Lake Hope HPA and to support exploration activities at Arkun and Broken Hill.

3 min read | February 25, 2025 11:00 AM AEDT | By Team Kalkine Media

Impact is raising up to $5.2 million to fund the development of Lake Hope HPA and to support exploration activities at Arkun and Broken Hill. — Image source: Shutterstock

Utilization of Proceeds

The raised capital is earmarked for key projects, including the Lake Hope high purity alumina (HPA) project, Arkun, and Broken Hill exploration programs. An ongoing pre-feasibility study (PFS) at Lake Hope is nearing completion, following successful test work results, thus advancing its path towards commercial production. Concurrent exploration activities and drill targeting at Arkun are planned to commence in Q2 2025, further fortifying the company's exploration pipeline.

Shareholder and Market Impact

Shareholders subscribing to the rights issue will gain the additional benefit of one free attaching listed option for every two shares they purchase, exercisable at 1.5 cents over a period of 2.5 years. This offering marks the first time the company has extended an equity raising to all shareholders since acquiring the Lake Hope project. This inclusive approach aims to reward loyal shareholders and attract new investors interested in the promising future of high purity alumina, whose demand is increasing globally.

Resource Potential and Economic Viability

The Lake Hope project boasts a measured resource of 730,000 tonnes grading 25.8% alumina, translating to about 189,000 tonnes of contained alumina. A proposed 10,000 tonnes per annum (tpa) HPA plant based on this resource could operate for 15 years, ensuring long-term project viability. A previous scoping study highlighted economic attractiveness, predicting a net present value of $1.3 billion and among the world's lowest operating costs at US$5000 per tonne. The global market price for 4N HPA (99.99% purity) exceeds US$20,000 per tonne, underscoring the project's significant potential.

Outlook and Forward Strategy

The board remains optimistic about the company's future, despite recent market fluctuations affecting the junior resources sector. The consistent progress of the Lake Hope project and other exploration endeavors positions the company favorably for its next growth phase. This capital raise represents a pivotal step in executing its strategic objectives, ensuring all shareholders benefit from forthcoming growth and success.

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