Forrestania Resources (ASX:FRS) is looking to advance its portfolio of lithium, copper, and gold projects in Western Australia through a $1.53 million renounceable entitlement offer.
The $3.58 million market capitalisation company says the funds will be used to advance exploration work and test priority lithium and copper targets across its Western Australian and Eastern Goldfields projects, with remaining proceeds to be used for general working capital.
Under the offer, eligible shareholders can apply for one new share for every 2 shares held at $0.03 a pop — a 30% discount to the company’s 30-day volume-weighted average price (VWAP) of $0.043 and a 60% discount to its 90-day VWAP of $0.075.
Forrestania reports every 2 shares subscribed for under the offer will be issued with one free option exercisable at $0.075 each on or before 20 November 2025.
The entitlement issue is partially underwritten to $750,000 by lead manager Mahe Capital, and shareholders can trade their rights or apply for additional shares and options from Wednesday 25 October 2023.
The company notes the offer is ‘strongly supported’ by its board of directors, who have committed to subscribe for entitlements for a total of $105,000.
Forrestania Resources Managing Director Michael Anderson says the company remains focused on unlocking the potential of the ‘highly prospective’ belt that holds its assets.
“The team has continued our systematic exploration of the Forrestania Project, delivering a number of positive outcomes including drilling ore-grade lithium mineralisation and visible spodumene at both the Giant and South Iron Cap East projects and locating stacked pegmatite systems at Calypso in proximity to known mineralisation.
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.
In addition, since expanding the footprint of the Eastern Goldfields Project, we have generated numerous new targets for both lithium and copper that these funds will allow us to drill.
As always, we intend to be proactive and focused in undertaking our work across the portfolio on these priority targets and shareholders can expect further significant news flow in the coming months.”
“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”
Forrestania Resources is a lithium, gold, and nickel explorer with a portfolio of projects located in the Forrestania, Southern Cross, and Eastern Goldfields regions of Western Australia, as well as the James Bay region of Quebec, Canada.
The company’s flagship Forrestania Project is considered prospective for lithium, gold, and nickel mineralisation and has a tenement footprint spanning about 100km within the ‘well-endowed’ southern Forrestania Greenstone Belt.
Forrestania Resources had $2.117 million cash and cash equivalents at hand as of 30 June 2023, according to its latest quarterly report.
Write to Adam Drought at Mining.com.au
Images: Forrestania Resources