How Will the A$40 Million Raised by WA1 Resources Develop the West Arunta Project?

WA1 Resources Ltd Secures A$40 Million for West Arunta Project Development

Melbourne, January 18, 2024 – WA1 Resources Ltd (ASX: WA1), a prominent player in the mining sector, announced a successful capital raise of A$40 million. This funding is a significant step in advancing the company's ambitious West Arunta Project.

A Strategic Financial Move: Placement Details and Impact

Capital Raised: WA1 Resources Ltd has garnered A$40 million through a placement, targeting institutional, sophisticated, and professional investors.
Share Issuance: The company will issue four million new fully paid ordinary shares.
Pricing Strategy: Shares are priced at A$10 each, a strategic discount of 5. 5% to the 30-day VWAP (Volume Weighted Average Price), and a 10. 2% discount to the last traded price of WA1’s shares.

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Financial Position Post-Placement

Enhanced Cash Position: Post-placement, WA1’s cash reserves are expected to be approximately A$56. 7 million.
Share Distribution: Following the issuance, WA1 will have around 61. 3 million shares in circulation.

Role of Financial Partners

Sole Lead Manager: Canaccord Genuity (Australia) Limited led the placement process.
Co-Managers: MST Financial Services Pty Ltd and Bell Potter Securities Limited also played significant roles.

Application of Funds: Advancing the West Arunta Project

Primary Application: The bulk of the funds will be directed towards drilling, exploration, metallurgical testwork, process and project studies, and permitting activities at the West Arunta Project.
Other Uses: Remaining funds will cover administration, corporate expenses, costs of the placement, and general working capital needs.

WA1’s Forward Strategy: Exploration and Resource Development

Paul Savich, WA1’s Managing Director, expressed confidence in the company's financial robustness following the placement. He emphasized that the additional funding would bolster ongoing exploration, including the 2024 field season and other critical project development activities.

Future Plans

Continued Exploration: A steady flow of results from the 2023 drill campaign is anticipated in the current quarter, setting the stage for the 2024 field season.
Project Advancement: Key activities will include metallurgical testwork, process development planning, exploration and resource drilling.
Initial Mineral Resource Estimate: Targeting the Luni area, the company plans to release an initial Mineral Resource estimate in the June quarter of 2024.

Support from Investors

Shareholder Participation: The placement saw engagement from existing shareholders and new high-profile institutional investors from Australia, Europe, and North America.

Indicative Placement Timetable

Announcement: January 18, 2024
Settlement: January 24, 2024
Allotment and Trading of New Shares: January 25, 2024

This financial infusion through the placement marks a pivotal moment for WA1 Resources Ltd, potentially accelerating the progress of the West Arunta Project and strengthening the company's position in the mining industry.

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