Azure concludes oversubscribed $10 million SPP

Lithium and nickel explorer and developer Azure Minerals (ASX:AZS) has concluded its $10 million Share Purchase Plan (SPP) to support work at its Andover Project in Western Australia.

The $1.16 billion market capitalisation company says the SPP closed early and oversubscribed on 8 September 2023. Under the offer, shareholders could apply for up to $30,000 of new fully paid ordinary AZS shares at an issue price of $2.40. 

This is the same price as the $120 million institutional placement launched by Azure on August 21. The company plans to raise the $120 million in 2 tranches, with ‘strong’ support already received for the first tranche of $100 million.  

The second $20 million tranche is subject to shareholder approval, which Azure will seek at a meeting in October.

As for the SPP, valid applications totalling under $37.765 million were received from 2,058 eligible shareholders, representing a participation rate of 27% and an average application amount of $18,350. 

Applications also ‘significantly’ exceeded the stated target size of $10 million, although the SPP remained capped at $10 million. 

Due to the ‘strong’ support, Azure undertook a pro-rata scaleback of applications received prior to the revised closing date. 

The issue of holding statements and refunds of application funds are scheduled for 15 September 2023. 

Azure plans to use the funding boost to complete exploration and resource drilling at Andover as it works to announce a maiden Mineral Resource for the project in the first quarter of next year. 

Azure Minerals is focused on rapidly advancing its multi-commodity, battery metals-rich Andover Project to build lithium resources through an ‘intensive’ multi-rig drilling campaign and development studies. 

The company’s portfolio of assets also includes the Barton Gold and Base Metals project, as well as the Turner River and Coongan Gold projects. 

Azure Minerals had $17.4 million cash at hand as of 30 June 2023, according to its latest quarterly report.

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Images: Azure Minerals
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Written By Adam Drought
Born and raised in the UK, Adam is a sports fanatic with an interest in Rugby League and UFC/MMA. When not training in Muay Thai and Brazilian Jiu Jitsu, Adam attends Griffith University where he is completing his final year of a Communication & Journalism degree.