Aberdeen Minerals, the Ellon-based company hunting for potential commercial deposits of base metals in rural Aberdeenshire, has raised about £1.1 million from investors.
The firm said it would use the cash, raised through a share issue to new and existing UK and international backers, to further its work exploring for and evaluating
mineral deposits.
It is on a mission to find nickel and copper – metals essential to the energy transition in Scotland and the wider UK – as well as cobalt, palladium and platinum, which are on the UK “critical minerals” list.
‘Significant’ investment
Aberdeen Minerals chairman Patrick Murphy said: “I would like to thank existing shareholders for their support and welcome new investors… as we make this significant additional investment in developing the mineral potential of north-east Scotland.
“Nickel, copper and cobalt are essential to the production of lithium-ion batteries and electrical infrastructure to support the rapid growth of renewable energy production and electrification of transport.
Aberdeen Minerals Ltd has raised approximately £1.1 million via new and existing UK and international #investors.
Funds will be used in #Aberdeenshire, exploring for #nickel and #copper – metals essential to the #energytransition in #Scotland and the UK.https://t.co/jWuoSBSagq pic.twitter.com/DZug3BeO74— Aberdeen Minerals Limited (@AberdeenMin) January 17, 2023
“Yet Scotland and the rest of the UK currently rely entirely on overseas supply chains for these critical raw materials.
“Our Aberdeenshire projects, therefore, represent an important opportunity to potentially secure direct UK supply of these metals as part of a just transition.”
Mr Murphy added: “The new funds raised will allow us to make major progress in their exploration.”
Strategic Minerals Europe, the parent of Aberdeen Minerals, is issuing more than 12 million new shares at 7.5p each in an initial tranche.
It is intended that a second tranche comprising nearly three million new shares will be issued to directors and founding shareholders who are also taking part in the fundraise.
Backers of the business include Gunsynd, an investment company specialising in the natural resource sector.
Aberdeen Minerals said part of its cash injection would pay for a drilling programme and related activities at the Arthrath project, near Ellon.
UK’s largest nickel deposit
Arthrath is home to the largest known nickel deposit in the UK and a safeguarded site for mineral development.
Drilling will verify and expand on previous activity carried out there by Rio Tinto in the 1970s and specifically investigate higher grade nickel-copper-cobalt mineralised zones.
Land around Ellon, Balmedie, New Deer, Methlick and Maud is being studied by the firm in the search for base metals.
Other locations include Pitmedden, Oldmeldrum, Tarves and a swathe of land north-west of Huntly.
Privately-owned Aberdeen Minerals hired international specialist SkyTEM Surveys for the “first modern airborne geophysical survey” of the region.
Helicopter surveys got under way last autumn but hit a hitch, according to reports at the time, when scanning equipment hit a powerline.
More than 1,000 homes in the Aberdeenshire village of Balmedie were without electricity for a spell.
Many geologists believe the north-east is rich in mineral resources, including metals that will be in high demand by battery-makers amid growing demand for electric vehicles and other low-carbon technologies.
Conversation