MTM completes Strategic Placement To Pengana Capital & Terra Capital

Pengana Capital has invested $4 million, becoming a substantial shareholder in MTM.

Pengana's support aligns with their existing investment in comparable ASX and NASDAQ-listed companies.

Terra Capital, an existing substantial shareholder of MTM, has increased its holding.

Placement followed unsolicited institutional demand, driven by leading investors recognising the growing global momentum for on-shoring critical metals and industrial technologies to the US.

Was completed at 0% discount to the last traded price, highlighting the strong investor confidence in MTM's strategic direction and growth potential
Placement also attracted backing from a substantial international Family Office, further broadening MTM’s institutional shareholder base.

Strong pipeline of newsflow expected throughout 2025: Upcoming updates on the pilot facility, ongoing testing programs, and advancements in strategic collaborations.

MTM Critical Metals Limited (“MTM” or the “Company”) (ASX: MTM) is pleased to announce the successful completion of a strategic $7.5 million placement to institutional investors, further solidifying its position as a leader in critical metals processing and advanced industrial technology. The placement was unsolicited and driven by strong interest from high-calibre institutional investors who recognise the long-term potential of the company.

This strategic opportunity was pursued not out of a need to raise funds but to align the register with investors who share our vision for future success. It represents an efficient way to secure their support and further strengthen the company’s position for sustained growth.

The placement includes a cornerstone commitment from Pengana Capital Group (Pengana), a prominent Australia-based fund with significant US presence, and substantial investment in similar innovative industrial technology companies. Pengana’s reputation as a leading fund with significant thematic conviction in onshoring critical metals to the United States underscores the strategic importance of MTM's mission. Pengana's investment complements their existing holdings in similar ASX and NASDAQ-listed companies that utilise innovative industrial metal processing technologies to revolutionise the critical metals supply chain.

Terra Capital, currently MTM's largest existing shareholder, has increased its position, reinforcing its commitment to the Company’s strategic vision & the growth of its Flash Joule Heating (FJH) technology. The placement also attracted backing from a substantial international Family Office, further broadening MTM’s institutional shareholder base.

MTM Managing Director & CEO, Michael Walshe, said: “This strategic placement is a transformative milestone for MTM. The calibre of investors, including Pengana Capital and Terra Capital, underscores the growing recognition of  MTM’s vision to revolutionise critical metals processing. Pengana’s investment, as a globally respected fund, is a strong endorsement of our mission and technology. We are grateful for their trust and look forward to delivering on our ambitious plans to onshore critical metals refining to the U.S.”

“We are committed to executing our commercialisation strategy by driving the timely completion of our Texas-based demonstration plant while fostering strategic partnerships with key industry and government stakeholders in the U.S.

The accelerated development of this state-of-the-art processing facility aims to reshore critical metals production, strengthening U.S. supply chain security and reducing reliance on foreign sources. Collaborations with esteemed organisations such as New York-headquartered Indium Corporation1 underscore MTM’s capacity to bolster the domestic critical metals supply chain, a priority amplified by ongoing global geopolitical dynamics”.

Placement Details

Firm commitments have been received for a Placement to subscribe for approximately 51.7 million new fully paid ordinary shares in the Company (“New Shares”) to professional and sophisticated investors at the issue price of $0.145 per share (“Issue Price”) to raise approximately $7.5 million (before costs).

The Issue Price of $0.145 per New Share is a nil discount to the last traded price at close of trading on 19 November 2024, and a 3.6% premium to the 20-day VWAP .

The New Shares will rank equally with existing ordinary shares on issue.

Placement Shares are expected to be issued on or about Monday, 6 January 2024.

Peloton Capital, Sandton Capital & GBA Capital, acted as Joint Lead Manager and Bookrunners. The associated fees are 6% of proceeds plus 6 million unlisted options exercisable at $0.25 with a four-year expiry from the date of issue.

Strategic Importance

The placement reflects the growing recognition of MTM’s pivotal role in addressing global supply chain vulnerabilities for critical metals. Both Pengana Capital and Terra Capital are cornerstone investors aligns with their existing investments in comparable ASX and NASDAQ-listed companies with a similar mission to transform the supply chain of critical metals through innovative metal processing technologies. Their investment in MTM demonstrates their  confidence in the Company’s potential to lead the sector.

Use of Funds

The Proceeds from the placement will be directed toward:

1. Accelerating the scale-up and commercialisation of MTM’s FJH technology, a revolutionary process enabling efficient recovery of critical metals, including gallium, germanium, and rare earth elements from waste streams & mineral ores.

2. Advancing the development of MTM’s Texas-based processing plant, aimed at reshoring the refining of critical metals to the US, addressing key national security and supply chain challenges.

3. Minimising permitting delay risks by potentially securing a pre-permitted industrial site to expedite project timelines.

Upcoming Newsflow Throughout 2025

MTM is poised for an exciting year ahead, with a strong pipeline of updates expected throughout 2025. Key milestones include the completion of the FJH demonstration plant design by February, followed by procurement, construction, and commissioning phases. In parallel, ongoing testing programs across multiple critical metal feedstocks, such as rare earths, lithium, and e-waste, will deliver further validation of the technology. Strategic partnerships, non-dilutive funding updates, and progress toward binding offtake agreements will also feature prominently as MTM advances its commercialisation strategy and builds momentum toward revenue generation.