Rare earths play Meteoric Resources chases funding

ASX-listed Meteoric Resources is seeking to capitalise on its own meteoric rise, tapping equity markets early this week to help cover a near-term funding gap.

With Meteoric’s shares up from 1¢ to 14¢ in the past year, the group’s seeking to raise $20 million at 12.5¢ with the potential to take another $10 million in oversubscriptions.

Funds raised would be used to settle a $US5 million acquisition payment for its Caldeira Project in Brazil, drilling, metallurgical testing and preliminary assessment works.

It would value the company at about $250 million on a post-money basis, at the issue price.

Brokers Evolution Capital and Petra Capital were lining up early backers on Sunday. Investors said the cash call was timed to meet its first Caldeira payment, due this week. Meteoric has agreed to pay $US20 million for Caldeira, split into four equal tranches over the coming three years.

It’s a change of course for the explorer ,which was supposed to use funds from the sale of its Jureana Gold Project (also in Brazil) to fund Caldeira.

Meteoric is still waiting on the $US17.5 million owed for Jureana. Source said it had hoped to be paid by March 31, however the money’s yet to flow in the door.

Extracted Source: AFR