Belararox (ASX:BRX) has launched a share placement, with commitments to raise $2.5 million to fund a range of exploration activities at its Argentine and Australian projects.
The company reports that under the placement, 7.58 million fully paid ordinary shares at $0.33 per share will be issued, representing a 16.5% discount to both the last traded price of the company’s shares on 14 June 2023 and its 15-day volume-weighted average price.
Additionally, 3.79 million free attaching options will be issued to investors on a 1-for-2 basis, with an exercise price of $0.66 and an expiry date of 3 years from their date of issue.
Belararox has also engaged with PAC Partners Securities as lead manager and bookrunner to the placement, with PAC entitled to receive 1.26 million options on the same terms as the placement options and a 6% fee payable on the gross proceeds raised under the placement.
The placement shares, options, and lead manager options are not subject to shareholder approval.
Belararox says the placement shares are expected to be issued on or about 27 June 2023.
The company intends to use the funds to accelerate exploration at the TMT Project in the San Juan region of Argentina, alongside continuing its exploration and geophysical surveys at the Belara and Native Bee projects in New South Wales.
Additionally, Belararox seeks to pursue exploration and other geophysical surveys across the Bullabulling Project in Western Australia and apply some of the funds to general working capital requirements.
Commenting on the capital raise, Belararox Non-Executive Chairman Neil Warburton says: “The overwhelming support received by existing and new shareholders is most encouraging as we commence exploration activities at the exciting TMT Project in Argentina and progress the good work achieved at our Bullabulling and Belara / Native Bee projects in Australia.
“The company has a pipeline of activities planned for the 2nd half of 2023 on our 3 projects, which are now funded”
The company has a pipeline of activities planned for the 2nd half of 2023 on our 3 projects, which are now funded. We expect a continuous release of news flow as we build on the successful exploration results achieved to date.”
Belararox intends to seek shareholder approval at a forthcoming general meeting to refresh its placement capacity to enable the company to retain as much flexibility as possible to issue additional Equity Securities in the future.
Belararox is a mineral explorer focused on securing and developing resources to meet the surge in demand from the technology, battery, and renewable energy markets. The company’s portfolio of projects is prospective for zinc, copper, gold, silver, nickel, and lead resources.
Write to Aaliyah Rogan at Mining.com.au
Images: Belararox Ltd
