Australian mineral exploration company Enegex (ASX:ENX) has received firm commitments of $3 million through a share placement to advance the company’s exploration activities across its Australian projects.
The placement will result in the issue of 200 million fully paid ordinary shares at a price of $0.015 per share which will be subject to shareholder approval. The shares will rank equal footing with existing shares.
As part of the placement and subject to shareholder approval, Enegex will appoint Roger Steinepreis and Nick Castleden to the board. The company says Steinepreis will subscribe for 26.66 million shares (commitment of $400,000) and will receive 25 million free attaching options as part of his subscription.
Of these options, 12.5 million will be exercisable at $0.02, and 12.5 million will be exercisable at $0.040 with a 4-year term. Castleden will subscribe for 16 million shares (commitment of $240,000) and will receive 25 million free attaching options under the same terms as Steinepreis as part of his subscription.
Enegex expects the funds raised in the placement to be used to advance the company’s mineral exploration activities, including new appraisal, ranking, and targeting exercises over its existing Australian projects. These funds are also expected to be used to evaluate potential new projects, and for general working capital.
Commenting on the placement, Enegex Chairman and Major Shareholder Geoff Albers says: “I am delighted that Roger and Nick have accepted our offer to invest substantial capital and time in Enegex, and we expect to welcome them to the board as significant shareholders.
“This is a very exciting development for the company and a strong endorsement of the company’s potential and its future”
This is a very exciting development for the company and a strong endorsement of the company’s potential and its future.”
Enegex reports it is proposing to appoint Castleden as a Non-Executive Director, and Steinepreis as a Non-Executive Chairman as Albers will resign his position following the shareholder meeting.
The company also notes Albers intends to remain a major shareholder of the company, and notes he is a ‘strong’ supporter of Enegex. As a result, he has agreed to subscribe for 8 million shares under the placement.
Peter Armitage also intends to resign from his position as a Director after the shareholder meeting on completion of the placement.
Enegex is an Australian mineral exploration company primarily focused on nickel-copper-platinum group element (Ni-Cu-PGE) in the West Yilgarn Province of Western Australia. The company’s portfolio in the region includes the Miamoon, Miling, Walebing, Goomalling, and Green Hills projects.
It also holds the Hart Dolerite Project in the East Kimberley Basin.
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