Sky Metals AU$6 Million Capital Raise to Advance Tallebung Tin Project

Highlights:

• AU$6 Million Capital Raise: Sky Metals Ltd (ASX: SKY) has secured AU$6 million through a share placement to fund the development of the Tallebung Tin Project, with strong support from investors, including major Australian resource funds.
• Focused on Resource Expansion: Funds will enable targeted drilling, bulk sampling, and metallurgical testing aimed at expanding resources and optimizing ore quality for market readiness.
• Progress Toward Feasibility: The project is moving closer to mining feasibility studies, positioning Tallebung as a significant tin source for industries reliant on electronics, semiconductors, and solar technology.

Sky Metals Ltd (ASX: SKY) has secured commitments to raise AU$6 million through a share placement to support the next phase of development for its 100%-owned Tallebung Tin Project in New South Wales. This capital injection aims to fund extensive resource expansion drilling, bulk sampling, and further metallurgical work to move the project closer to mining feasibility studies. The company received strong backing from both existing and new investors, including leading Australian resource funds, underlining the project’s potential.

Details of the Capital Raise

The capital raise will be conducted at an issue price of AU$0.05 per share, with a total of approximately 120 million new shares issued in two tranches. The first tranche will provide AU$5.45 million under Sky Metals’ current placement capacity, while the second tranche of AU$0.55 million, committed by company directors, is subject to shareholder approval at a meeting set for December 2024. At the time of writing, this placement price represents a 7.4% discount to the last closing price of AU$0.054 and a slightly higher discount compared to recent VWAP metrics.

Strategic Use of Funds

The proceeds will enable Sky Metals to conduct targeted drilling to expand resources, focusing on newly identified higher-grade zones on the deposit’s margins. In addition to drilling, bulk sampling and metallurgical studies will optimize ore sorting and produce tin concentrate samples for potential marketing. These activities are critical steps in positioning Tallebung for a mining feasibility assessment, a milestone for the company’s growth.

Sky Metals' Managing Director, Oliver Davies, expressed gratitude for the robust investor support, particularly from resource funds, and highlighted the commitment of the board to the project’s success. Bell Potter Securities Ltd served as the lead manager for the placement.

Looking Ahead

The capital raise underscores Sky Metals' confidence in advancing the Tallebung Tin Project as a secure source of tin for critical industries. With market demand for tin rising in electronics, semiconductors, and solar technologies, the Tallebung project is well-positioned to become a major player in the industry’s supply chain.

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