Lefroy Exploration (ASX:LEX) has received firm commitments to raise $6.2 million via a heavily oversubscribed placement.
The $32 million market capitalisation company will issue 38.75 million fully paid ordinary shares at an issue price of $0.16 per new share.
New shares issued under the placement rank equally with Lefroy’s existing fully paid shares.
The issue price was at a 20% discount to the last closing price of Lefroy and a 22.2% discount to the 15-day volume weighted average price (VWAP) of the company’s shares.
Bridge Street Capital Partners and Morgans Corporate were joint lead managers for the placement.
Lefroy’s Directors have also committed to participate for a total of $465,000, subject to shareholder approval.
Proceeds from the capital raise will be used to accelerate exploration at the newly acquired Location 45 Project in Western Australia.
Exploration programs will primarily be focused on resource infill and expansion drilling at the Goodyear deposit and Mt Martin Gold Mine.
Commenting on the placement, Lefroy Exploration Chairman Gordon Galt says: “Lefroy had excellent buy-in from existing and new sophisticated and institutional investors, leaving the company well positioned to advance exploration at our nickel and gold assets at Location 45.
Planning for drilling and resource expansion work at both Goodyear and Mt Martin is already well progressed and we look forward to delivering what investors want – drills turning and investment going into the ground.
The placement received heavy oversubscribed, demonstrating strong appetite to firm up and expand our resources by advancing exploration programs, as well as potentially laying pathways towards fast-tracking development.”
The company notes a drill rig is scheduled to mobilise and begin work at Mt Martin in October, and then move onto the Goodyear deposit in November this year.
Lefroy Exploration is an active Western Australian explorer, focused on expanding and developing its growing gold and critical minerals projects. The company’s flagship Lefroy Project has a contiguous land package of 645km-square.
Write to Aaliyah Rogan at Mining.com.au
Images: Lefroy Exploration