Belararox (ASX:BRX) has received firm commitments from both new and existing sophisticated and professional investors in an oversubscribed placement to raise $3.85 million.
The placement is at $0.55 per share (before costs) and subject to shareholder approval, investors participating in the placement will also receive a 1 for 1 attaching listed option (ASX:BRXO), with an exercise price of A$0.95 and an expiry date of 6 June 2024.
The issue price of A$0.55 represents a 15% discount to the 15-day volume weighted average price and a 16% discount to the last traded price of $0.64.
The placement shares and listed options will rank equally and carry the same terms as the securities currently on issue.
Belararox reports the equity raise will help fund a range of tasks that are expected to be progressively completed over the next 6-12 months.
Belararox notes that the new equity will help fund the phase two drilling program at Belara Project, where the company remains on track to release its initial Inferred Resource in October 2022.
The funds raised will also be used to complete the results and interpretation of the DHEM and FLEM conducted from holes surveyed at Belara and Native Bee confirming extensions to known massive sulphide mineralisation, as well as other geophysical surveys across the whole circa 640km-square Belara tenement package.
Belararox will apportion some capital for the ongoing review and evaluation of other related ‘high value’ projects presented to Belararox and for general working capital requirements.
Addressing the equity raise, Belararox Non-Executive Chairman Neil Warburton commented: “The overwhelming support received by existing and new shareholders vindicates the exploration and resource potential of the Belara Project identified by the company.
“The overwhelming support received by existing and new shareholders vindicates the exploration and resource potential of the Belara Project identified by the company”
We are excited to now commence the final planning for the Phase 2 drill program once the DHEM and FLEM surveys have been interpretated and following on from the release of the initial Resource in late October.”
CPS Capital acted as sole lead manager to the placement, which was oversubscribed and strongly supported by new and existing shareholders.
It is expected that the placement shares will be issue on or about 3 October 2022.
All listed options to be issued under the placement will be issued subject to a meeting of shareholders and approval of shareholders at that meeting is expected to be at the Annual General Meeting to be held on or around 3 November 2022.
Write to Adam Orlando at Mining.com.au
Images: iStock
