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Highlights
- Polymetals secures $35 million for Endeavor mine restart.
- Focus on exploration expansion and development activities.
- Plans to position Endeavor as a leading silver-zinc producer.
Polymetals Resources Ltd (ASX:POL) has successfully raised A$35 million in a single-tranche placement at A$0.80 per share. The company is now well-equipped to proceed with its Endeavor Silver-Zinc Mine restart and strengthen its financial position. With approximately A$37 million in cash on hand, plus A$26 million in undrawn debt facilities, Polymetals is set to meet its goal of first production of silver and zinc at Endeavor by Q2 2025.
This capital raise will serve multiple purposes, including bolstering the company’s balance sheet and funding near-mine exploration activities. A significant portion of the raised funds will be directed towards advancing exploration at the Carpark prospect, as well as regional exploration initiatives aimed at discovering new opportunities.
Polymetals’ Executive Chairman, Dave Sproule, expressed gratitude to both existing and new shareholders for their support. He stated that the Endeavor restart activities are progressing on schedule, with the company aiming to establish a sustainable silver and zinc production operation. With the current strong market conditions for zinc and silver, Polymetals is in an advantageous position to capitalize on favorable terms for zinc concentrate producers.
Polymetals’ strategic approach to exploration includes reviewing over 50 years of exploration data to identify compelling targets. The company is also expanding its exploration team to ensure effective testing of these high-priority targets. The funds raised will allow Polymetals to accelerate its exploration efforts and continue building momentum towards the goal of becoming one of Australia’s next prominent silver and zinc producers.
The $35 million raised will be allocated as follows: A$15.5 million will go towards strengthening the balance sheet in preparation for production, while A$10 million will be spent on exploration activities across the 2025 and 2026 calendar years. Corporate and general working capital requirements will receive A$7.8 million, with the remaining A$1.68 million covering placement costs.
Polymetals has also announced a Share Purchase Plan (SPP) allowing existing shareholders to purchase up to A$30,000 worth of shares at the same price of A$0.80 per share. The company anticipates raising up to A$3.2 million through the SPP, which will provide further financial support for its growth initiatives.
With Endeavor on track for its planned restart, Polymetals is set to build a solid foundation for the future, contributing significantly to the New South Wales mining sector and the community of Cobar.
