Gold and base metals explorer Astral Resources (ASX:AAR) has extended the closing date of its recently opened $2 million share purchase plan (SPP) by a week.
The offer opened on August 11 and was initially set to close at 5pm on Friday 1 September. Now, Astral has extended the closing date to Friday 8 September to give eligible shareholders more time to consider and respond to the offer.
Under the terms of the offer, eligible shareholders can subscribe for up to $30,000 new Astral shares at $0.065 per share without incurring any brokerage or transaction costs. All up, Astral is seeking to raise $2 million from the SPP, though the company has the right to accept oversubscription and scale back applications as it sees fit.
The SPP follows a $3 million share placement announced on 31 July, with placement shares also priced at $0.065. This represents a discount of 15.7% to Astral’s five-day volume-weighted average price leading up to the announcement of the placement and SPP.
Astral plans to use the placement and SPP funds to advance resource definition drilling and technical and feasibility studies at its Mandilla and Feysville Gold Projects near Kalgoorlie in Western Australia. The funding boost will also help the company advance a Scoping Study for Mandilla, which is on track to be released before the end of 2023.
Under the new SPP timeline, new shares will be quoted on the ASX on 18 September.
Astral Resources owns a portfolio of projects in the Kalgoorlie-Kambalda region of Western Australia.
The company’s Mandilla project lies roughly 770km south of the township of Kalgoorlie and 20km east of Kambalada, while Feysville is situated about 14km south of the Golden Mile deposit at Kalgoorlie.
Astral Resources had $1.3 million cash at hand as of 30 June 2023, according to its latest quarterly report, though this was, of course, prior to the launch of the placement and SPP.
Write to Joshua Smith at Mining.com.au
Images: Astral Resources
