Victory Metals Secures $4M Placement at $0.73 Per Share to Boost Development
Victory Metals Limited has raised $4 million in a placement supported by top shareholders and company leadership, aiming to fast-track the Pre-Feasibility Study and development of its flagship North Stanmore Heavy Rare Earth Project in Western Australia.
- Placement raises $4 million at $0.73 per share, a 15% discount
- Strong backing from top 20 shareholders and company leadership
- Funds to accelerate Pre-Feasibility Study and project development
- Placement includes shares to investors and directors, plus unlisted options
- Shareholder approval pending for director participation in July 2025
Victory Metals Advances Capital Raise
Victory Metals Limited (ASX: VTM) has successfully secured $4 million through a placement of new shares priced at $0.73 each, representing a 15% discount to the last traded price before the recent trading halt. This capital injection is strongly supported by the company’s top 20 shareholders, alongside participation from directors and management, signalling robust confidence in the company’s strategic direction.
Backing from Leadership and Investors
The placement comprises over 5 million shares issued to professional and sophisticated investors, with an additional allocation to directors and management pending shareholder approval. Notably, the company is also issuing 1.8 million unlisted options to unrelated investors, exercisable at $1.30 within two years, further incentivising long-term commitment to Victory’s growth trajectory.
Focus on North Stanmore Project Development
Proceeds from the placement will be directed towards accelerating the Pre-Feasibility Study (PFS) and advancing development of Victory’s flagship North Stanmore Project. Located in the Cue region of Western Australia, North Stanmore is Australia's largest clay-hosted heavy rare earth deposit, rich in critical metals such as scandium, gallium, and hafnium. The project’s strategic importance is underscored by its potential to supply metals currently restricted under Chinese export controls.
Strategic Implications and Market Position
Victory’s CEO Brendan Clark highlighted the pivotal nature of this capital raise, describing North Stanmore as one of the world’s most advanced heavy rare earth clay projects. The company’s metallurgical test work has successfully recovered seven strategic metals, positioning Victory as a key player in the global critical minerals landscape. This development aligns with broader geopolitical trends emphasizing supply chain diversification for rare earth elements.
Next Steps and Shareholder Engagement
Shareholder approval for the director participation component of the placement is scheduled for a general meeting in July 2025. Settlement of shares issued to investors is expected by early June, with trading to commence shortly thereafter. Investors will be watching closely for updates on the PFS progress and any further capital initiatives as Victory seeks to solidify its standing in the rare earths sector.
Bottom Line?
Victory Metals’ $4 million raise sets the stage for rapid advancement of a critical rare earths project amid shifting global supply dynamics.
Questions in the middle?
- Will shareholder approval for director participation be secured without delay?
- How will the accelerated Pre-Feasibility Study impact project timelines and financing needs?
- What market response will Victory Metals see as it advances its rare earths portfolio?
