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Highlights
- Guardian Metal Resources (GMET) announces a £750,000 placing with an institutional investor.
- The funds will be allocated to accelerate exploration and development activities in Nevada, USA.
- 2,500,000 new shares issued, representing 2.00% of the enlarged issued share capital.
Guardian Metal Resources PLC (LON:GMET), a key player in the strategic exploration and development of tungsten in Nevada, USA, has successfully raised £750,000 through a placing with a prominent institutional investor. The placing, conducted at an issue price of £0.30 per share, marks a significant milestone for the company as it continues to strengthen its position in the growing U.S. tungsten supply chain. As a notable LON mining stock, Guardian Metal Resources aims to further its exploration and project development activities, particularly at its Pilot Mountain and Tempiute projects.
A Strategic Move to Strengthen the U.S. Supply Chain
The raised funds will primarily support Guardian Metal Resources' accelerated exploration and project development efforts at its Pilot Mountain project, with a potential expansion into the Tempiute project, pending agreement finalization. With tungsten being an essential metal with critical applications in both military and industrial sectors, the U.S. government has been keen on securing a domestic supply of the resource. Guardian Metal Resources is well-positioned to contribute to this growing demand.
Institutional Backing and Strategic Focus
Premier Miton, a well-established UK asset management company, subscribed to the entire placing. The funds managed by Gervais Williams and Martin Turner have added a solid institutional partner to the company’s growth strategy. Gervais Williams, known for his role as president of the QCA and a member of the AIM advisory panel at the London Stock Exchange, brings significant industry expertise to the table.
The placing will involve the issuance of 2,500,000 new ordinary shares, representing 2.00% of the company’s enlarged share capital. Notably, no warrants are attached to this subscription, signaling strong confidence in the company’s future potential.
Use of Funds
The net proceeds from the placing will be applied to the company’s working capital, particularly for further exploration and the development of its projects. Guardian Metal’s move to raise capital is aligned with its long-term objectives of capitalizing on the surging demand for tungsten, particularly from U.S. industries.
The company is set to make an application for the 2,500,000 Placing Shares to be admitted to trading on AIM, with an anticipated admission date of 9 January 2025. Following this, the company's issued share capital will total 125,006,991 ordinary shares, representing the total voting rights.
This move positions Guardian Metal Resources for continued growth and strategic development in the crucial tungsten sector, with a clear focus on expanding its footprint in Nevada and meeting U.S. industrial and military demand for the essential metal.
