Junior gold explorer North Stawell Minerals (ASX:NSM) has raised only half of what it sought through a $2 million entitlement offer and will subsequently launch a shortfall placement to top up its funds.
The company launched the entitlement offer in early December, under which eligible shareholders could subscribe for one new share for every 3 already owned at $0.05 per share. This issue price marked a discount of 31.5% to the company’s closing price of $0.073 the day before the offer was launched.
While North Stawell aimed to raise $2 million, the company reports that the offer raised $925,388 plus an additional $59,718 through a top-up facility — meaning North Stawell fell short by just over $1 million.
However, the terms of the raise stipulate that North Stawell can place any unsubscribed shares at the same price as the entitlement offer within 3 months after the offer’s closing date.
North Stawell says it plans to use the funding boost to support exploration drilling programs and ‘strategic growth opportunities’.
The company holds a string of tenements across ‘the most gold-prospective geology’ undercover in Western Victoria, with seven contiguous tenements covering 504km-square of strike.
North Stawell Minerals had just over $1 million in cash at hand as of September 30, according to its latest quarterly report.
Write to Joshua Smith at Mining.com.au
Images: North Stawell Minerals
