Sky Metals Ltd (ASX: SKY) has secured binding commitments to raise $20.5M through a share placement priced at $0.155 per share, providing the funding needed to accelerate development of its 100%-owned Tallebung Tin Project in central New South Wales. The placement, supported by both new and existing institutional investors, includes $496K committed by Sky directors, subject to shareholder approval.
The company will issue approximately 132.2M new shares under its existing placement capacity, with a small second tranche requiring shareholder approval. Sky Metals said the capital raise places the company in a strong position to advance Tallebung through ongoing Resource expansion and infill drilling, bulk sampling and metallurgical testwork, environmental studies, and the preparation of mining feasibility work. An updated Mineral Resource Estimate is expected next quarter, incorporating what is anticipated to be more than 400 drill holes.
Oliver Davies, managing director and CEO of Sky Metals, commented, “We thank our existing shareholders for their strong and ongoing support, and welcome several new investors who have joined our register in this capital raising. This pivotal capital raising puts SKY in a very strong position to accelerate development of the Tallebung Tin Project. The commitment shown by the Board is also greatly appreciated and reflects our shared focus on driving the business forward as we enter an important period of growth and development.”
A portion of the placement proceeds will also advance the Doradilla Tin Project, where recent metallurgical testwork delivered a saleable tin concentrate with ~78% recovery. Follow‑up drilling at Doradilla will target further expansion along the now 10km‑long mineralised corridor as Sky aims to demonstrate its potential as a future large‑scale tin asset and complementary development opportunity alongside Tallebung.
Sky Metals said the placement price represents an 18.4% discount to the last closing price and a 6.3% discount to the 10‑day VWAP.
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