OD6 Metals has received firm commitments to raise AU$6.92 million through a single-tranche placement to fund exploration and development at its Quinn fluorspar project in Nevada, US.
The placement involves issuing over 72.8 million new ordinary shares at 9.5 cents per share to investors. The issue price represents a 13.6 per cent discount to the company’s last closing price on 30 September.
Proceeds from the capital raise will primarily fund a maiden drilling and bulk sampling program at the Quinn project, pending US Forest Service approval.
Capital will also support metallurgical testwork, resource modelling, assaying, geophysics, and ongoing regulatory permitting as OD6 works toward a maiden JORC Mineral Resource estimate.
Additionally, the funds will cover the cash component of deferred acquisition consideration due to Quinn’s vendors upon receipt of drilling permits, as well as working capital and the potential evaluation of complementary US critical minerals assets.
“The level of demand reflects growing investor interest in Quinn and in the strategic importance of establishing secure domestic fluorspar supply in the United States,” Managing Director Brett Hazelden said.
“With a strengthened balance sheet, we now have the financial capacity to systematically test that opportunity, advance the metallurgy and build the technical foundation required to progress Quinn towards a maiden Mineral Resource and ultimately development.”
To reflect its shift toward US operations, OD6 plans to rebrand as Adaven Ltd. The new name, which is Nevada spelled in reverse, signals the company’s focus on the American market while maintaining its Australian project portfolio, including rare earth elements at Splinter Rock in Western Australia and copper at Gulf Creek in New South Wales.
“The proposed change of name to Adaven Limited reflects the evolution of the company and our ambition to build a leading US-focused critical minerals business, anchored by Quinn while retaining the significant value and optionality within our Australian portfolio,” Hazelden said.
The name change is subject to shareholder approval at its upcoming general meeting. Upon approval, the company expects its ASX ticker to change from OD6 to ADA.
