Future Metals Confirms Major Cu-Ni-PGM Mineralisation at Eileen Bore, Raises A$4.2M
Future Metals NL has confirmed significant copper-nickel-PGM mineralisation at its Eileen Bore Prospect, unveiling a newly defined 4.5km intrusion. The company also secured A$4.2 million through a placement and planned rights issue to advance development and explore strategic processing partnerships.
- Maiden drilling at Eileen Bore confirms significant Cu-Ni-PGM mineralisation
- Discovery of a 4.5km NE trending intrusion with fault offset mineralisation
- Non-binding MOU signed with Zeta Resources to assess ore processing at Savannah Plant
- Placement raised A$1.58 million; rights issue planned to raise ~A$2.64 million
- Funds targeted to develop Eileen Bore deposit as bulk copper feed source
Significant Drilling Results at Eileen Bore
Future Metals NL (ASX | AIM: FME) has delivered a promising update in its March 2025 quarterly report, confirming substantial copper, nickel, and platinum group metals (PGM) mineralisation at the Eileen Bore Prospect, located within the East Kimberley region of Western Australia. Maiden diamond drilling intersected a 30m zone grading 1.06% copper, 0.45% nickel, and 1.14g/t PGM, validating historical data and highlighting the prospect’s potential.
Further drilling revealed that the mineralisation is part of a newly defined 4.5-kilometre northeast trending mafic-ultramafic intrusion, which has been faulted approximately 300 metres north. This structural insight expands the exploration target significantly, with anomalous magmatic sulphides intersected over 127 metres in one hole, including a 7.4m interval of notable copper and nickel grades.
Strategic Partnership with Zeta Resources
Post quarter, Future Metals executed a non-binding Memorandum of Understanding (MOU) with Zeta Resources Limited, owner of the Savannah Mine processing plant currently on care and maintenance. This collaboration aims to assess the feasibility of processing ore from Future Metals’ Eileen Bore and Panton projects at the Savannah Plant, potentially unlocking significant value by leveraging existing infrastructure.
The MOU sets the stage for a technical, economic, and regulatory evaluation, with both parties committed to exploring a commercial arrangement should the feasibility studies prove positive. This strategic move could accelerate the path to production and enhance shareholder returns by integrating mineral resources with established processing capabilities.
Capital Raising to Fund Development
To support ongoing exploration and development, Future Metals completed a placement raising A$1.58 million at 1.1 cents per share, with Zeta Resources acquiring a 9.99% stake. Additionally, the company announced a forthcoming rights issue on a 1-for-3 basis to raise approximately A$2.64 million on the same terms, targeting existing shareholders.
The combined capital raise of up to A$4.2 million before costs is earmarked primarily for advancing the Eileen Bore deposit, aiming to establish a bulk copper feed source for the Savannah Plant. The company ended the quarter with approximately A$0.45 million in cash, excluding the placement proceeds, positioning it to maintain momentum in its exploration and development programs.
Looking Ahead
Future Metals plans further geophysical surveys, including ground electromagnetic (EM) work, to refine drill targets within the 4.5km intrusion, particularly in the yet undrilled southeastern extent. The company’s methodical approach to expanding the resource footprint and securing processing partnerships reflects a strategic focus on de-risking and value creation.
While the MOU with Zeta Resources remains non-binding and feasibility assessments are ongoing, the alignment of exploration success with infrastructure access could mark a pivotal phase for Future Metals. Investors will be watching closely as drilling results, capital raising execution, and partnership developments unfold.
Bottom Line?
Future Metals’ blend of robust drilling results and strategic partnerships sets the stage for a critical growth phase, but key feasibility outcomes remain to be seen.
Questions in the middle?
- Will the feasibility study with Zeta Resources translate into a binding processing agreement?
- How extensive is the mineralisation along the full 4.5km intrusion at Eileen Bore?
- What impact will the planned rights issue have on shareholder dilution and funding sufficiency?
