The company, working with Canaccord Genuity and Rawson Lewis, has raised A$7.5 million, locking in commitments for a placement priced at 6c per share, plus options worth 8.5c on a 3:1 basis, expiring in two years.
It had been seeking $4.5 million from investors, but such was the demand that it accepted $3 million in oversubscriptions.
Trek’s directors, including Pilbara Minerals founders Neil Biddle and John Young, are seeking permission to put in $500,000 of the total.
The raising will boost Trek’s cash position to $9 million and fund a ramp up of work over the next six months.
Work last year suggests Tambourah “has all the right ingredients for a lithium discovery”, according to CEO Derek Marshall, with field surveys recovering rock chips up to 3.07% lithium.
It now needs to get a rig into the field next month for its maiden drilling where some 3000m of RC work is planned to test mapped pegmatite dykes.
The rock chips are from the Eastern prospect, while soil sampling suggests the Central prospect is also “within the lithium zone”.
Regional sampling is planned to generate additional targets, following encouragement from stream sampling in the south.
Tambourah is less than 70km southeast from Pilbara’s world-class Pilgangoora lithium mine.
Funds will also be directed to its new Hendeka manganese project, mainly towards metallurgical test work to produce a concentrate, and then a high-purity manganese sulphate monohydrate battery-grade product.
The project was previously worked up by Spitfire Materials, which defined the Contact/Contact North deposit, south of the Woodie Woodie mine.
Trek recently farmed out its Jimblebar project in the Paterson province to Rio Tinto for a potential $45 million spend searching for nickel and copper.
