Forrestania Resources (ASX:FRS) has allotted nearly $250,000 in shortfall shares from a recent entitlement offer, meaning it has officially raised its desired $1.935 million.
The company allotted the 3.5 million shortfall shares to clients of the offer’s lead manager and underwriter, RM Corporate Finance.
While the entitlement offer initially aimed to raise $1.935 million to fund exploration at the Forrestania and Eastern Goldfields projects in Western Australia, applications were received from existing shareholders for about $1.688 million through the issue of about 24.122 million new ordinary shares.
However, the offer was fully underwritten, and the shortfall of about 3.529 million shares has now been placed, raising about $247,000 of additional funding. For each new share applied for, shareholders also received a free attaching quoted option.
Shares in Forrestania Resources were up 32.98% to $0.12 at 3:39pm AEST on 4 July.
Commenting on the entitlement offer, Forrestania Resources Managing Director Michael Anderson says: “The company would like to thank everyone who participated in the offer for their support.
“We intend to put the funding to good use across our portfolio of projects in both WA and Canada”
We intend to put the funding to good use across our portfolio of projects in both WA and Canada, and we look forward to keeping everyone informed of our progress.”
Forrestania reports the new shares and options applied for under the shortfall have been allotted and will rank equally with existing shares on issue. Each option will also be in the same class as the company’s newly quoted options (ASX:FRSOA), which are exercisable at $0.15 each on or before 30 June 2026.
Forrestania Resources is an Australian explorer searching for lithium, gold, and nickel across its Forrestania, Southern Cross, and Eastern Goldfields projects in Western Australia.
The company is also exploring for lithium in the James Bay region of Quebec, Canada, through an earn-in agreement with ALX Resources (TSXV:AL) to acquire a 50% interest in the Hydra Lithium Project.
Write to Harry Mulholland at Mining.com.au
Images: Forrestania Resources Ltd
