Lodestar Minerals (ASX:LSR) has issued 80 million fully paid ordinary shares to Acuity Capital as part of its at-the-market (ATM) facility entered into on 12 April 2023.
The company has also issued 55 million options exercisable at $0.07 each on or before 6 April 2024 to sophisticated investors.
Lodestar Minerals’ share price had increased 20% to $0.006 on the Australian Securities Exchange (ASX) today (19 April 2023) as of 12noon AWST.
The ATM provides Lodestar with up to $2 million of standby equity capital over the coming 40 months to 31 July 2026. Importantly, Lodestar has full discretion as to whether or not to utilise the ATM, the maximum number of shares to be issued, the minimum issue price of shares and the timing of each subscription.
There are no requirements on Lodestar to utilise the ATM and Lodestar may terminate the ATM at any time, without cost or penalty.
Acuity Capital and the ATM do not place any restrictions at any time on Lodestar raising capital through other methods.
“We see the ATM facility as a component of the funding methods available to the company”
Earlier this month Lodestar Managing Director Ed Turner commented: “We have established the ATM facility with Acuity Capital as a means to afford Lodestar with increased flexibility to source funding for our exploration activities moving forward into the future. We see the ATM facility as a component of the funding methods available to the company and anticipate it will provide an efficient and effective benefit to all shareholders of the company.”
Acuity is reportedly the first to provide such funding agreements to Australian-listed companies and is reportedly the largest provider of ATMs in the country. ATM funding provides companies with an additional source of capital that is flexible and cost-effective.
Images: Lodestar Minerals Ltd
