Reach Resources (ASX:RR1) has received $6.05 million in total cash funding, following completion of its rights issue shortfall allocation and placement to new substantial shareholder Andel Resources.
The company allocated 100% of the remaining shortfall from its non‑renounceable rights issue, raising a further $2.32 million.
This follows the initial $825,855 received in April from eligible shareholders who participated in the two‑for‑five entitlement offer priced at $0.009 per share.
Andel Resources has subscribed for 100 million placement shares, representing approximately 9.4% of Reach’s issued capital at the time of the May announcement.
It also acquired 25.54 million shortfall shares, bringing its total holding to approximately 9.48% following today’s share issues.
The placement and shortfall allocation will see 258.01 million new shares issued 12 June 2026, with Andel’s placement shares utilising the company’s ASX Listing Rule 7.1 capacity.
Reach Resources has also received a $2 million non‑refundable option fee from Andel to advance key approvals and accelerate project development at the Murchison South Gold Project.
“We are delighted to welcome Andel to the register as a substantial holder,” CEO Jeremy Bower says.
“Having received just over $6 million in cash, we are very well funded and in an excellent position to accelerate work at Murchison South while pursuing any future endeavours with confidence.”
Write to JC Villarba at Mining.com.au
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