Helix Resources (ASX:HLX) is looking to tap its existing shareholders for roughly $2.3 million via a one for three renounceable entitlement offer.
The rights issue is partially underwritten up to $1.5 million by lead manager and underwriter Mahe Capital.
Helix Chair Mike Rosenstreich intends to take up all of his entitlements pursuant to the rights issue.
Helix, which has an $11.61 million market capitalisation, says shares will be issued at $0.003 per share, a 40% discount to the last Friday’s (19 April 2024) closing price of $0.005 per share.
For every two new shares applied for, eligible shareholders will receive one free attaching option exercisable at $0.006 within three years.
Entitlement rights are scheduled to begin trading from 24 April 2024.
Rosenstreich says funds from the rights issue will be used for drill testing six copper (and gold) targets on Helix’s Cobar tenements in central New South Wales (NSW).
“This fundraising enables a decisive drill program to test a series of new copper targets which is the culmination of several years’ target generation work,” he says.
“Our confidence in the targeting has grown in recent months with the novel application, for this style of mineralisation, of established geophysical survey techniques highlighting unrecognised potential in the immediate vicinity of our Canbelego copper mineral resource, as well as other new targets along this mineralised Rochford Copper Trend.”
Drilling is slated to begin in May 2024.
The rights issue follows last week’s release of additional results from several geophysical surveys undertaken across Helix’s tenements in the Cobar-Nyngan region of NSW, as reported by Mining.com.au.
Results, gathered from the Bijoux prospect along the Rochford copper trend, map the presence of a new 2km copper zone.
Helix Resources is focused on generating new copper targets on its underexplored ground position and testing them through drilling to make new discoveries.
As of December 2023, Helix had just over $3 million in cash and cash equivalents at hand, according to its latest half-year report.
Write to Adam Drought at Mining.com.au
Images: Helix Resources
