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Emerging metals processing technology company NVRO Metals (TSXV: NVRO) is seeking to raise up to $C35 million through a private placement supported by strategic investors as it advances plans to establish a critical minerals processing hub near Darwin.
The proposed raising has attracted interest from KEWA Financial, commodity trading group Transamine SA and US-based Hecla Mining Company, providing potential backing for NVRO’s ambitions to commercialise its proprietary hydrometallurgical technology.
NVRO has entered into an agreement with ATB Cormark Capital Markets and Cantor Fitzgerald Canada Corporation to act as co-lead agents and joint bookrunners for the placement.
The offering comprises up to 269.2 million units priced at $C0.13 each, with every unit consisting of one common share and a warrant exercisable at $C0.18 over 36 months.
An additional 15 per cent placement option could lift total proceeds to approximately $C40.25 million.
The strategic investors have entered into non-binding term sheets, with their participation subject to due diligence, definitive agreements and regulatory approvals.
Proceeds will primarily fund NVRO’s proposed acquisition of Northern Territories Resources, providing a pathway to developing the Browns copper oxide project near Darwin.
The acquisition represents a significant step in NVRO’s strategy to commercialise a low-temperature, low-pressure hydrometallurgical process designed to recover valuable metals from mine waste, tailings and complex polymetallic materials.
Developed over five years, the technology has demonstrated gold and silver recoveries of 99 per cent and 98 per cent respectively, while potentially reducing acid mine drainage by more than 95 per cent.
Browns offers an opportunity to accelerate commercialisation by leveraging existing infrastructure and approvals.
NVRO chief operating officer Royston Denysschen previously highlighted the advantages of acquiring the project.
“In the case of the old Browns oxide project, we’ve got 80 per cent of the equipment we need installed and permitted,” Denysschen told Australian Resources and Investment.
“That’s advanced our schedule by at least four years and it’s probably saved us around $100 million.”
Initial operations are expected to focus on conventional copper cathode production alongside cobalt and nickel hydroxide before incorporating NVRO’s proprietary technology to process more complex feedstocks.
The longer-term strategy involves establishing centralised metals hubs capable of aggregating material from multiple mining operations, including legacy tailings and otherwise uneconomic resources.
NVRO has previously signed a Heads of Agreement with Transamine covering future copper cathode sales and potential financing arrangements, alongside a memorandum of understanding with Hecla in Alaska.
The proposed placement, expected to close around October 27, remains subject to regulatory approvals and other conditions.
For investors, the raising represents a potential financing milestone in NVRO’s transition from technology development towards commercial metals production, with Browns providing the first test of its proposed scalable processing-hub model.
Read more: NVRO takes mine-waste technology towards commercial scale
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