Polymetals Secures $35M to Restart Endeavor Mine and Boost Exploration

Polymetals Raises $35 Million to Fuel Growth

Polymetals Resources Ltd (ASX: POL) has successfully completed a $35 million equity capital raise through a single tranche placement of 43.75 million shares priced at $0.80 each. This capital injection comes as the company prepares to restart its Endeavor silver and zinc mine in New South Wales, aiming for production to commence in the second quarter of 2025.

The placement was well supported by both existing and new sophisticated investors, including offshore institutional participants, reflecting confidence in Polymetals’ strategy and the favourable market conditions for zinc and silver. With the placement proceeds and existing cash, Polymetals now holds a pro forma cash balance of around $37 million, complemented by access to approximately $26 million in undrawn debt facilities.

Strategic Allocation of Funds

The funds raised will primarily strengthen the company’s balance sheet as it transitions toward production at Endeavor. Approximately $15.5 million is earmarked for this purpose. Additionally, Polymetals plans to significantly accelerate its exploration activities, allocating $10 million over 2025 and 2026 to near-mine targets, including the promising Carpark prospect, as well as regional exploration across its extensive license holdings.

Corporate and general working capital needs will be supported with $7.8 million, while placement costs are estimated at $1.68 million. This balanced approach aims to underpin both operational readiness and growth opportunities, positioning Polymetals to capitalize on strong commodity prices and favourable treatment terms for zinc concentrate producers.

Shareholder Participation and Market Positioning

Alongside the placement, Polymetals is offering a Share Purchase Plan (SPP) to existing shareholders, allowing them to purchase up to $30,000 worth of shares at the placement price of $0.80. This non-underwritten SPP is expected to raise up to $3.2 million, providing an inclusive opportunity for loyal investors to participate in the company’s next growth phase.

Executive Chairman Dave Sproule expressed gratitude for the strong investor support and highlighted the company’s commitment to delivering on its production timeline. He emphasized the extensive groundwork undertaken over the past two years, including the collation and validation of five decades of exploration data, which has identified multiple compelling targets to drive future resource growth.

Outlook and Market Context

Polymetals is on track to become Australia’s next silver and zinc producer, with Endeavor’s restart activities progressing on schedule and budget. The timing is particularly advantageous given the robust Australian dollar zinc and silver prices and the favourable treatment terms currently available to concentrate producers.

Looking ahead, the company’s strengthened financial position and expanded exploration program set the stage for a potentially transformative period. Success in exploration could extend the mine life well beyond the initial five approved leases, enhancing Polymetals’ standing in the polymetallic-rich Cobar Super Basin.