Titanium play IperionX raises $25m after US Defense Department win

afr.com:

IperionX Technology, a small caps darling focused on producing high-performance titanium alloys, was flaunting its just-announced grant from US Department of Defense as it knocked together an equity raising on Tuesday morning.

IperionX last raised at $1 a share in May. Louise Kennerley

Street Talk understands IperionX sent out stockbroker Bell Potter to find backers for $25 million to go alongside the US DOD award. Sources said IperionX’s largest shareholders, including Fidelity and B. Riley Principal Investments, were expected to back the deal which should be announced on the ASX on Wednesday.

The raise comes after IperionX on Monday won a $US12.7 million award under the US’s Defense Production Act Investment (DPAI) Program, which has handed out $US674 million in total to 21 companies this year.

It noted IperionX makes titanium alloys from titanium minerals or 100 per cent recycled materials, and wants to be producing 10,000 million tonnes titanium metal powder within five years. The award would help IperionX commission and scale up its facility in Virginia to a demonstration plant.

It wouldn’t be surprising if there’s a mad rush for discounted stock under the bookbuild.

While the DOD win is a strong vote of confidence, IperionX had already risen 84 per cent this year by Monday’s close. Investors who chipped in for its last cash call in May at $1 a share have done well out of their investment with the stock last trading at $1.25.

IperionX had a $243 million market capitalisation before the raise. It should have $US45 million in funding post completion.