Zenith Minerals Limited (ASX: ZNC) has successfully completed a $1.44 million placement to professional and sophisticated investors, paving the way for accelerated drilling activities at its Dulcie Far North and Red Mountain projects.

The placement, priced at $0.045 per share, represents a modest 2.2 per cent discount to the company’s last closing price of $0.046 on October 4, 2024.

Zenith will issue up to 32 million new shares, which are expected to be settled by October 15, 2024.

In addition to the placement, Zenith’s directors have committed $125,000, subject to shareholder approval at the upcoming Annual General Meeting on November 25, 2024.

The company will also launch a Share Purchase Plan (SPP) to raise up to $500,000, allowing eligible shareholders to participate on the same terms as the placement.

Andrew Smith, Managing Director of Zenith Minerals, expressed gratitude for the strong investor support, stating: “These funds will allow us to accelerate drilling activities and take critical steps towards realising the potential of these key assets.”

The capital raise will primarily fund drilling programs at Dulcie Far North and Red Mountain, with the aim of expanding existing resources.

The remaining funds will be allocated to working capital and placement costs.

Zenith Minerals, an ASX-listed company, focuses on minerals critical for the global energy transition, including lithium, gold, and base metals.

The company’s portfolio includes projects such as Split Rocks, Waratah Well, and Hayes Hill for lithium, as well as gold and base metal projects like Red Mountain and Earaheedy.

As of October 21, 2024, Zenith Minerals’ share price stands at $0.050, representing a 6.38 per cent increase from its previous close.

The company’s market capitalisation is approximately $18 million.