Metal Bank’s $2.32M Raise Hinges on Shareholder Support to Fund Critical Gold Projects
Metal Bank Limited (ASX – MBK) has announced a partially underwritten entitlement offer aiming to raise $2.32 million to fast-track its Western Australia gold projects and explore graphite potential in Queensland. The offer, priced at $0.014 per share, is supported by Equator Capital Management Ltd and targets existing shareholders.
- Pro-rata non-renounceable entitlement offer to raise up to $2.32 million
- Offer price set at $0.014 per share, representing an 18-20% discount
- Partially underwritten by Equator Capital Management Ltd up to $1 million
- Funds allocated to advancing Livingstone and Whiteheads gold projects in WA
- Graphite exploration at Millennium Copper & Cobalt project in Queensland
Entitlement Offer Details and Strategic Focus
Metal Bank Limited (ASX, MBK) has unveiled a pro-rata non-renounceable entitlement offer to raise approximately $2.32 million before costs. Shareholders are invited to subscribe for one new share for every three shares held at a discounted price of $0.014 per share. This pricing reflects an 18% discount to the last traded price and a 20% discount to the 10-day volume weighted average price, signaling an attractive entry point for investors.
The offer is partially underwritten by Equator Capital Management Ltd, which has committed up to $1 million, providing a degree of certainty to the capital raising. The entitlement offer opens on 30 September 2025 and closes on 31 October 2025, with the company reserving rights to extend or close early.
Capital Deployment, Advancing Gold and Graphite Projects
Funds raised will be strategically deployed to accelerate Metal Bank’s Western Australia gold strategy, particularly focusing on the Livingstone and Whiteheads projects. The Livingstone project boasts a substantial JORC 2012 Mineral Resource Estimate of 2.81 million tonnes at 1.36 grams per tonne gold, equating to 122,500 ounces. Meanwhile, the Whiteheads project, acquired recently from Hastings Technology Metals, is progressing towards a maiden JORC resource with plans for approvals and production commencement.
In addition to gold, Metal Bank is advancing graphite exploration at its Millennium Copper & Cobalt project near Cloncurry, Queensland. This includes drilling, sampling, and metallurgical testing supported by a Collaborative Exploration Initiative grant. The company aims to unlock the graphite potential over a strike length exceeding two kilometres, complementing its existing cobalt and copper resources.
Broader Portfolio and Growth Prospects
Beyond these core projects, Metal Bank maintains a diversified portfolio including gold projects in South East Queensland and a strategic joint venture in Saudi Arabia. The company’s recent acquisitions from Hastings Technology Metals also include the Ark and Darcy’s gold projects, expanding its footprint in Western Australia’s prolific gold regions.
Chair Inés Scotland emphasized the company’s commitment to fast-tracking production and resource growth, highlighting strong shareholder support and confidence from new parties interested in the entitlement offer. The capital raise is positioned to underpin ongoing exploration, resource definition, and project development activities.
Looking Ahead
As Metal Bank moves to lift its trading halt and execute its capital raising, the market will be watching closely for subscription uptake and the company’s ability to place any shortfall. Successful funding will be critical to advancing key milestones, including mining approvals, resource upgrades, and production starts, which collectively could reshape the company’s growth trajectory in the competitive gold and base metals sector.
Bottom Line?
Metal Bank’s entitlement offer sets the stage for a pivotal phase of project advancement, with market confidence hinging on shareholder participation and exploration outcomes.
Questions in the middle?
- Will shareholder uptake meet the full $2.32 million target or will there be a significant shortfall?
- How soon can Metal Bank expect to convert its resource upgrades into production at Livingstone and Whiteheads?
- What are the early indications from graphite exploration at Millennium, and could this diversify Metal Bank’s revenue streams?
