Junior explorer Forrestania Resources (ASX:FRS) has closed a ‘significantly oversubscribed’ entitlement offer and will now pocket just shy of $1.8 million from investors.
The company launched the one-for-2 rights issue back in October, seeking $1.53 million from existing shareholders to advance exploration work across its Western Australian project portfolio.
Now, Forrestania says it had agreed to take on a $250,000 follow-up placement on the same terms as the rights issue to accommodate shareholders and investors who applied for additional shares under the entitlement offer.
As such, following the completion of the follow-up placement, Forrestania will issue just under 59.5 million new shares alongside 29.7 million new options to raise just under $1.785 million. The options have a strike price of $0.075 and expire on or before 20 November 2025.
Mahe Capital acted as lead manager and underwriter to the entitlement offer.
Forrestania plans to use its funding boost to test priority lithium and copper drill targets at its namesake Forrestania Project and Eastern Goldfields projects.
In October, Managing Director Michael Anderson said the company had so far delivered ‘a number of positive outcomes’ from its exploration work in the region so far.
“Given we are on the doorstep of the world-class Mt Holland lithium deposit, and significant gold and nickel mines, we remain confident that we are doing the right things in the right areas, and there is plenty more still to do as we aim to unlock the discovery potential in this highly prospective belt,” Anderson said when the capital raise was launched.
“there is plenty more still to do as we aim to unlock the discovery potential in this highly prospective belt”
New shares subscribed for under the raise are expected to be issued on 17 November 2023.
Write to Joshua Smith at Mining.com.au
Images: Forrestania Resources