Queensland gold explorer Savannah Goldfields (ASX:SVG) has raised just shy of $1 million through the institutional component of its 2-for-5 entitlement offer.
Under the offer, first announced on 22 December, Savannah is giving shareholders the chance to purchase 2 new shares for every 5 shares already owned at $0.04 per share — a discount of some 11.1% to the company’s closing price on 19 December 2023 and 17.4% to its 15-day volume weighted average price (VWAP) of $0.0484 on the same date.
Savannah plans to use the funds to support near-term exploration work at its Agate Creek and Georgetown gold projects, with a portion of the cash to go towards mining expenditure at Agate Creek, specifically the Sherwood Pit 6 pre-strip.
The company today (28 December) reports that the institutional component of this entitlement offer has been completed, with Savannah directors and their aggregates buying up a combined $800,000 in new shares. All up, the institutional offer brought in $950,000 for Savannah.
All-up, Savannah plans to raise $3.2 million through the entitlement offer, with the retail component of the raise slated to open on 3 January.
The entitlement offer is fully underwritten by Bizzell Capital Partners, an entity associated with company Chairman Stephen Bizzell.
Savannah Goldfields had $112,000 in cash and cash equivalents at hand and just under $6 million in unused finance facilities as of 30 September, according to its latest quarterly report.
Write to Joshua Smith at Mining.com.au
Images: Savannah Goldfields
