The Scorpion Minerals Ltd (ASX: SCN) share price is soaring today on the back of a $3 million equity raise.
This company's shares have surged 23.88% today and are currently trading at 8.3 cents. In earlier trade, the share price hit 10 cents before pulling back. This was 49% more than the previous closing price of 6.7 cents.
Let's take a look at why this ASX miner is having a good day on the market.
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What did this ASX miner announce?
Scorpion has raised millions to explore lithium and base metals in Western Australia.
The company placed 62,325,000 shares on the market, raising a total of $3.18 million. Shares were offered at 5.1 cents, a 23.9% discount on the last closing price of 6.7 cents.
This ASX miner will use the funds to explore the Pharas Project in Western Australia.
The project, 60km northwest of Cue, contains multiple lithium, gold, copper, and PGE-Ni-Cu prospects.
Scorpion has already chosen several targets for drilling and testing.
Commenting on the news, executive chairman Bronwyn Barnes said:
We are very pleased to have received such strong support for this placement and I would like to welcome new shareholders to the register and thank our existing shareholders for their support.
Barnes has transitioned to the role of executive chairman and will lead the company's corporate activities.
The company has also formed an agreement with independent technical consulting group Obsidian Metals Group Pty Ltd (OMG) for technical services. Lithium expert Michael Fotios is a lead consultant to OMG.
Share price snapshot
The Scorpion Minerals share price has risen 67% in the past 12 months and is up 11% year to date.
In contrast, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned about 7% in the past year.
In the past month, the company's shares have risen 26%, gaining 22% in the past week alone.
This ASX miner has a market capitalisation of about $22 million.
