Octava Minerals Secures $457,500 in First Tranche for Federation Project
Octava Minerals has successfully completed the initial phase of its $1.5 million capital raise, positioning the company to advance exploration and due diligence at its promising Federation Copper-Zinc-Silver Project.
- First tranche raised $457,500 via 15.25 million shares at $0.03 each
- Placement includes free attaching options pending shareholder approval
- Second tranche and advisor options subject to upcoming shareholder vote
- Funds earmarked for exploration and due diligence at Federation Project
- Broker fees include 6% brokerage and advisor options with 3-year expiry
Capital Raise Progress
Octava Minerals Limited (ASX, OCT) has announced the successful completion of the first tranche of its $1.5 million placement, raising approximately $457,500. This initial phase involved issuing over 15 million ordinary shares at a price of three cents each, reflecting strong support from new sophisticated and professional investors. The capital injection is intended to maintain momentum on exploration activities and initiate due diligence at the company’s Federation Copper-Zinc-Silver Project in Western Australia.
Structure and Incentives
Alongside the share placement, investors will receive one free attaching unlisted option for every two shares acquired, exercisable at eight cents within three years. These options are subject to shareholder approval at an upcoming general meeting, which will also consider the issuance of additional shares and options in the second tranche of the placement. The inclusion of options aims to provide investors with potential upside while aligning interests with the company’s growth trajectory.
Strategic Use of Funds
The funds raised will primarily support exploration and due diligence at the Federation Project, a key asset in Octava’s portfolio that targets copper, zinc, and silver mineralisation. This project complements the company’s broader suite of Western Australian assets, including lithium, gold, rare earth elements, antimony, nickel, and platinum group metals. The capital raise underscores Octava’s commitment to advancing its resource base in proven mining regions.
Next Steps and Market Implications
The second tranche of the placement, involving nearly 35 million shares and 25 million attaching options, awaits shareholder approval. Additionally, broker fees include a 6% commission and advisor options with a three-year expiry, also subject to approval. Market participants will be watching closely for the outcome of the upcoming general meeting, which will determine the full extent of the capital raise and potential dilution. Successful completion could provide Octava with the financial flexibility to accelerate exploration and enhance shareholder value.
Bottom Line?
Octava’s capital raise sets the stage for critical exploration milestones, but shareholder approval will be pivotal to unlocking its full potential.
Questions in the middle?
- Will shareholders approve the second tranche and attaching options at the upcoming meeting?
- How will the market respond to the dilution from the new shares and options?
- What early exploration results can investors expect from the Federation Project?
