Helix Resources (ASX:HLX) has launched a renounceable entitlement offer to raise around $1.68 million in preparation for drilling at the White Hills Project in Arizona, US.
The company will issue shares at $0.001, which represents a 50% discount to the last closing price of $0.002, as well as a 44.4% discount to the 30-day volume weighted average price (VWAP).
The entitlement offer is expected to open 20 August, before closing 3 September at 5pm AWST.
Mahe Capital is acting as the lead manager, which is also partially underwriting the offer for up to $500,000.
Helix directors have shown interest to participate in this offer, with non-executive director Kylie Prendergast taking her full entitlement and executive Chair Michael Povey and associated entities taking up to 50% of his entitlement.
Holders will be eligible to acquire one free-attaching option per every two shares subscribed in this offer, at an exercise price of $0.002 for a period of two years from issue.
In addition to an upcoming drilling campaign at White Hills, Helix will also use funding to streamline a resource estimate of the Gold Basin Project nearby.
Following a recent drilling campaign at Gold Basin, the company says drillholes indicate the project’s potential for a “substantial” resource upgrade, as reported by Mining.com.au.
Helix Resources is a mineral explorer focused on developing its landholdings across central New South Wales, Australia through gold and copper assets.
Write to Maddison Elliott at Mining.com.au
Images: Helix Resources
