Coppermoly (ASX:COY) is launching a non-renounceable entitlement offer to raise $2.1 million to fund drilling at its Mt Isa Project in Queensland.
Eligible shareholders will be offered the opportunity to acquire one new COY share for every 3 shares held as of 7:00pm (AEDT) on 9 November 2023 at an issue price of $0.012 per new share.
The company notes shareholders will be entitled to subscribe for any new shares that are not taken up by other shareholders in accordance with the offer.
Further, Coppermoly has also received a binding commitment from Custom Group Investments for a placement of up to 108.3 million shares, or $1.3 million, of any residual shortfall from the entitlement offer.
Any new shares not taken up in the entitlement offer will form part of this placement and will also be priced at $0.012 per share.
The company plans to put the funds raised from the offer and placement towards a 3,000m reverse circulation (RC) drilling program aimed to identify induced polarisation (IP) anomalies and downhole electromagnetic (EM) surveys, as previously announced.
Coppermoly will also be using the funds for a ground EM survey, geochemical mapping, and a further induced polarisation (IP) survey on other identified GEOTEM anomalies, alongside funding other general working capital expenses.
Coppermoly Non-Executive Director Wanfu Huang says: “Following our announcement on 3 November 2023 and the pleasing results from the IP Sounding Survey programs at the Shuffelton prospect and Foxtails prospect, the company is pleased to provide shareholders with the opportunity to participate in funding its maiden drill program in Mt Isa to test these anomalies, with works proposed to commence in the December quarter.”
“the company is pleased to provide shareholders with the opportunity to participate in funding its maiden drill program in Mt Isa…”
Applications for the entitlement offer close at 5:00pm AEDT on 24 November 2023.
Coppermoly is a copper-gold explorer and resource developer focused on its assets in Australia and Papua New Guinea.
As of 30 September 2023, the company had $1.7 million cash and cash reserves at hand, according to its latest quarterly report.
Write to Aaliyah Rogan at Mining.com.au