Pure Resources Issues 11.3M Shares and 3.8M Options in $1.7M Placement
Pure Resources Limited has raised $1.7 million through a share placement and option issuance to advance its Garnet Hills graphite project, highlighting promising jumbo flake graphite findings.
- Raised $1.7 million via placement of 11.33 million shares at $0.15 each
- Issued 3.78 million free attaching options exercisable at $0.25, expiring 2028
- Funds targeted at exploration, metallurgical studies, and US downstream strategy
- Completed priority and shortfall option offers totaling 36.75 million options
- Issued 500,000 shares to former director Dr James Warren
Capital Raising to Accelerate Garnet Hills
Pure Resources Limited (ASX – PR1) has successfully completed a $1.7 million capital raising through a placement of over 11 million shares priced at 15 cents each. Alongside the shares, the company issued nearly 3.8 million free attaching options exercisable at 25 cents, expiring in December 2028. This injection of funds is earmarked primarily for advancing the company's flagship Garnet Hills Garnet and Graphite Project in Western Australia.
Promising Jumbo Flake Graphite Potential
Recent petrographic studies at Garnet Hills have revealed the presence of large to jumbo flake graphite, with average flake sizes around 200 micrometers and some exceeding 300 micrometers. This high-quality, clean, and inclusion-free graphite is hosted in high-grade metamorphic rocks, positioning the project as a technically compelling hard-rock graphite opportunity. Such graphite characteristics support strong beneficiation prospects and the potential for premium pricing in the market.
Strategic Deployment of Funds
The capital raised will fund a range of activities including follow-up exploration and drilling programs to further delineate the graphite resource, metallurgical and beneficiation studies to optimise processing, and the advancement of a US-focused downstream strategy. Additionally, Pure Resources plans to explore other assets within its portfolio, including the Killarney, Mount Monger, Yandal, and Yundamindra projects, while maintaining general working capital.
Options Issuance and Shareholder Engagement
In tandem with the placement, Pure Resources completed a priority and shortfall offer, issuing over 36.7 million options to former option holders of the expired PR1OA class. These options, exercisable at 25 cents and expiring in 2028, were issued at a nominal price and are pending ASX quotation. The company also issued 500,000 shares to former director Dr James Warren, reflecting ongoing engagement with key personnel and consultants.
Looking Ahead
With the capital raising complete and exploration plans underway, Pure Resources is positioning itself to capitalise on the growing demand for high-quality graphite, a critical component in battery technologies. The company’s focus on both upstream resource development and downstream processing initiatives signals a strategic approach to value creation in the evolving battery metals sector.
Bottom Line?
Pure Resources’ latest funding round sets the stage for critical exploration and development milestones at Garnet Hills, with market eyes on upcoming results and option listings.
Questions in the middle?
- When will the newly issued options be officially quoted on the ASX?
- What are the timelines and expected milestones for the Garnet Hills exploration and downstream strategy?
- How might the capital raise impact Pure Resources’ valuation and shareholder dilution?
