Diversified explorer Ragnar Metals (ASX:RAG) has received applications under an entitlement issue to raise about $1.023 million to fund activities at the recently acquired Halleberget and Bergom Lithium projects in Sweden.
The $7.96 million market capitalisation company reports it received valid applications for about 51.149 million shares and options, which will be issued tomorrow (27 July 2023).
Under the entitlement issue that closed on 20 July 2023, eligible shareholders were able to subscribe for 1 new share for every 4 held at an issue price of $0.02 per share.
Each share to be issued under the entitlement issue also came with a single option, bringing the total entitlements to about 94.796 million shares and options.
Ragnar initially sought $1.89 million from the entitlement offer.
Nevertheless, the company reported on 26 June 2023 that the entitlement offer was underwritten by Stevsand Investments as a trustee for Steven Formica Family Trust, which is an entity controlled by director Steve Formica, for the last $1.48 million.
As such, the remaining shares and options totalling around 43.646 million, which represent gross proceeds of $843,928, will be issued under the underwriting agreement and are expected to be issued by 3 August 2023.
The company says the funds raised from the entitlement offer will be used for activities at its new Swedish assets along with the costs of divesting Ragnar Metals Sweden AB, and for general working capital.
On 26 June 2023, Ragnar secured the Halleberget and Bergom projects, which are situated in an area considered ‘highly prospective’ for lithium pegmatite deposits, as the projects lie within the western extent of the same belt that contains the largest lithium deposits in Scandinavia.
Ragnar Metals is a Perth-based explorer focused on its portfolio of nickel, copper, and gold assets across Sweden. This portfolio comprises the Granmuren Nickel prospect, along with the Gaddebo, Halleberget, and Bergom projects.
The company also holds the Leeds and Kenya projects in Western Australia. On 26 June 2023, Ragnar entered a conditional sale and purchase agreement to dispose of its subsidiary Ragnar Metals Sweden AB for $9.8 million.
Write to Harry Mulholland at Mining.com.au
Images: Ragnar Metals Ltd
