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Highlights

  • Victory Metals raises $4 million via discounted share placement to fund prefeasibility study at North Stanmore.

  • The raise includes 5.137 million shares at $0.73 and 1.8 million options exercisable at $1.30 over two years.

  • Gallium and seven critical rare earth elements recovered from project, amid growing global strategic metal demand.

Victory Metals Ltd (ASX:VTM) has announced a $4 million capital raise to accelerate the Prefeasibility Study (PFS) at its North Stanmore Project, located near Cue along Western Australia's Great Northern Highway. The funding initiative aims to advance what the company claims is Australia's leading heavy rare earth project and one of the most developed of its kind globally.

The capital raising will see 5.137 million new shares issued to investors at $0.73 per share, representing a 15% discount to Victory’s last closing price of $0.86 on 26 May 2025. In addition, 342,466 shares will be issued to company directors and management on the same terms.

As part of the offer, 1.8 million options will also be issued to unrelated parties involved in the capital raising. These options carry a $1.30 exercise price and a two-year validity period.

Funds from the placement will be primarily allocated to progressing the prefeasibility study at the North Stanmore Project, which recently gained industry attention following the successful production of gallium and a full suite of critical heavy rare earth elements (HREEs) from its Mixed Rare Earth Carbonate (MREC) test work. The MREC output includes seven strategic metals, many of which are currently subject to Chinese export restrictions.

Gallium, one of the strategic metals recovered from the project, plays a vital role in next-generation technologies including AI chips, semiconductors, quantum computing, defence applications, LEDs, and solar energy systems. The current global spot price for gallium stands at US$239.77 per kilogram, following a period of price volatility earlier in the year.