Perth-based exploration companies Parkway Minerals and Trek Metals have completed capital raisings collectively worth $8.3 million.
Perth-based exploration companies Parkway Minerals and Trek Metals have completed capital raisings collectively worth $8.3 million.
Both firms propose to expand ongoing operations and received placements worth $5.25 million and $3.05 million, respectively.
This will put the firms’ cash reserves at about $8.2 million and $5 million, respectively.
Parkway Minerals has proposed to use the new funds for the commercialisation of its technology portfolio, as well as a range of strategic growth initiatives.
At Parkway’s 2020 AGM Presentation, the company outlined its aspirations to become a leading technology solution provider, which will include entering the water-wastewater sector.
Parkway's portfolio includes the operation of pilot plants and development several proprietary technologies for the processing of brine.
The business also partly owns two potash deposits located in the Northern Territory and in Germany, although these are expected to be divested in the medium term.
The new Parkway shares will be issued at a price 100 per cent greater than capital raising in October last year, at 1.8 cents.
Parkway managing director Bahay Ozcakmak said the capital raised would allow the company to execute its medium and long-term strategic goals.
“The addition of a conventional process portfolio will enable us to provide our clients with a wider range of process solutions and will also be a powerful springboard for commercialising our own portfolio of next-generation technologies,” he k said, referring to the company’s proposed entry into the water-wastewater sector.
“This transformational capital raising allows … us to demonstrate to our partners that we have the balance sheet to stand behind the application or our technology-based solutions.”
Currently, Trek has ongoing exploration and drill programs at two gold mines in the Pilbura region: the Pincunah Project and the Tambourah project, which was acquired earlier this month. Trek also has projects in NT and Gabon.
Among the investors is Trek Chairman Tony Leibowitz, who has placed an application for $350,000, about 8.7 per cent of the shares to be issued. Mr Leibowitz’s application will be subject to shareholder approval.
Trek shares will be issued at a price of 6 cents.
Trek executive director John Young said the placement reflected the company’s growing recognition within the market.
“This is a significant capital raising for the company that puts us in an enviable position as we embark on our maiden exploration and drilling programs in the Pilbara,” he said.
“The standout feature of all our projects is that they have had virtually no modern exploration and remain wider open for potential new discoveries.”
At 11:53am AEDT, Parkway shares were down 8.3 per cent to trade at 2.2 cents whilst Trek shares were up 6.25 per cent to trade at 8.5 cents.
