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OD6 Metals Raises $1.17 Million for Gulf Creek Copper Project Exploration

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Funds to advance highly prospective project with potential for high-grade copper mineralization.

OD6 Metals Limited (ASX: OD6) has raised $1.17 million before costs through a share placement to professional and sophisticated investors. The funds will be used to advance exploration at the Gulf Creek Copper Project in New South Wales, support general working capital, and assess potential future opportunities.

The placement consists of 26 million fully paid ordinary shares at an issue price of 4.5 cents per share, representing a 4.3% discount to the last closing price of 4.7 cents and a 24% discount to the 15-day volume-weighted average price (VWAP) of 5.9 cents. Directors Darren Holden, Brett Hazelden, and Mitch Loan have subscribed for $65,000 in aggregate, with the issue of their shares subject to shareholder approval at a planned extraordinary general meeting in mid-March.

Drilling at Gulf Creek is set to commence imminently, with DDH1 appointed as the lead drill contractor. Phase 1 drilling will focus on testing mineralisation around historical workings, alongside downhole electromagnetics. The company is also preparing for Phase 2 drilling.

Gulf Creek was historically one of the highest-grade copper mines in New South Wales, with production grades of 2% to 6.5% copper before its closure in 1912 due to weak copper prices. The project has had little exploration over the past century, and recent geophysical modelling has identified multiple high-priority drill targets, as well as potential extensions and repeat high-grade VMS structures. Over 3km of untested strike exists in the immediate mine-stratigraphy, with more than 10km across the tenement.

Under the placement terms, investors will receive one free attaching option for every two shares subscribed, exercisable at 6.5 cents with a three-year expiry, subject to shareholder approval. JP Equity Holdings Pty Ltd acted as the sole lead manager and bookrunner for the placement and will receive a 6% cash fee and 3,000,000 options on the same terms. Yelverton Capital Pty Ltd has been engaged as a corporate adviser and will receive 5,000,000 options, also subject to shareholder approval.

OD6 Metals’ managing director, Brett Hazelden, said the raise would help accelerate planning and approvals for multiple high-priority drill targets, while ensuring the company has sufficient funding to complete the approved Phase 1 program and commence Phase 2 activities.

Settlement of the placement is expected on 19 February 2025, with shareholder approval for director participation and options to be sought at the upcoming extraordinary general meeting.

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