Helix Resources (ASX:HLX) has raised $2.32 million through a “heavily oversubscribed” rights issue, the proceeds of which will fund drilling at the Canbelego Copper Project in New South Wales.
An additional $500,000 was also accepted via a placement to accommodate some of the excess demand.
Managing Director Dr Kylie Prendergast says the company now has sufficient funding to advance its exploration strategy in NSW’s Cobar district.
“The first step will be to grow our existing copper resource by exploring a high-conviction target near to the existing high-grade Canbelego mineral resource,” she says.
Under the rights issue, Helix will issue about 774.38 million shares and 387.19 million new options, exercisable at $0.006 until 21 May 2027.
Mahe Capital acted as the lead manager and underwriter to the offer.
Chairman Mike Rosenstreich says the structure and pricing of the offer aimed to give shareholders first priority, while ensuring the raise is sufficient to fund drilling at Canbelego.
“There was significant demand, approximately double what we were seeking, so in a disciplined fashion we elected to take an additional half million via a placement,” he says.
The new securities are expected to be issued on 21 May.
Yesterday, Helix announced it had begun a drilling campaign at Canbelego to test a priority geophysical anomaly.
The new prospect is considered to be the most large and strong induced polarisation anomaly identified at Canbelego to date.
The Canbelego project is a joint venture between Helix and Aeris Resources (ASX:AIS) and lies within Helix’s Western Group Tenements in the Cobar-Nyngan region of New South Wales.
Write to Aaliyah Rogan at Mining.com.au
Images: Helix Resources
