Magmatic Resources (ASX:MAG) reports it is offering a Share Purchase Plan (SPP) which follows a $3 million placement it raised to help fund the expansion and acceleration of drilling at its Myall Project following strong initial results at the Corvette prospect.
On 16 November, Magmatic announced that it had received firm commitments for a placement of more than 30 million fully paid ordinary shares at a price of $0.10 per share to sophisticated, institutional, and professional investors.
Magmatic Resources reports that the proceeds raised will be used to fund the expansion and acceleration of the high impact drilling program at the Myall Project following strong initial results at the Corvette Prospect, in addition to continued exploration of other ‘high priority’ targets in Magmatic’s portfolio and for general working capital.
The shares under the placement were issued on 23 November. In order to provide eligible shareholders with the ability to participate in the company’s capital raising activities, the company has released a SPP. Under the plan, eligible shareholders will have the opportunity to purchase up to $30,000 worth of shares at the same price as the placement, irrespective of the size of their shareholding, without incurring brokerage or transaction costs.
Magmatic notes that the offer under the plan is intending to raise a maximum of $1 million
Magmatic notes that the offer under the plan is intending to raise a maximum of $1 million. The company may elect to accept additional subscriptions or alternatively close the offer early and/or scale back applications.
Participation under the plan is optional and is available exclusively to shareholders who were registered as holders of shares as of at 7pm AEDT on Tuesday 15 November and whose registered address is in Australia or New Zealand.
The plan entitles eligible shareholders, irrespective of the size of their shareholding, to purchase up to $30,000 worth of shares at an issue price of $0.10 being the same price as the shares offered to sophisticated and professional investors under the placement.
The price represents a discount of 21.9% to $0.128 (being the volume weighted average market price (VWAP) of the shares over the last 5 trading days on which sales in the shares were recorded before the day on which the plan was announced.
Depending on applications received, the company may undertake a scale back so that not more than $1 million is raised under the SPP. The plan will not be underwritten.
Following the placement, in the event that less than $1 million is applied for under the plan, the full amount of the shortfall may be placed at the discretion of the board subject to compliance with all necessary legal requirements.
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