Rex Minerals (ASX:RXM) has received binding commitments to raise $8 million via a placement comprising the issue of 40 million new fully paid ordinary shares at $0.20 per share.
The $148.19 million market capitalisation company says the issue is within its 15% placement capacity. The issue price represents a 20% discount to the last closing price of Rex Minerals’ shares on 31 July 2023, and a 16.8% discount to the 30-day Volume Weighted Average Price (VWAP).
The joint lead managers for the placement are Euroz Hartleys and Morgans Corporate, while co-Manager is Acova Capital.
“This capital raising provides Rex with a significant working capital buffer to see us comfortably through completion of the equity and debt funding processes for Hillside”
Commenting on equity raising, Rex’s CEO Richard Laufmann says: “This capital raising provides Rex with a significant working capital buffer to see us comfortably through completion of the equity and debt funding processes for Hillside leading to the near-term development of a new copper mine in Australia.”
Rex’s Hillside Project is situated 12km south of the township of Ardrossan on the Yorke Peninsula, South Australia. Copper-gold mineralisation was first discovered at the Hillside Project by Rex in 2008, and the company subsequently raised funds to drill out the deposit. The company completed a Feasibility Study in 2015 and a costing update was completed in 2020.
Write to Adam Orlando at Mining.com.au
Images: Rex Minerals Ltd