Savannah Goldfields (ASX:SVG) has launched a fully underwritten 2-for-5 entitlement offer to raise $3.2 million to fund exploration work across its gold assets in Queensland.
Under the terms of the offer, eligible shareholders can buy for 2 new shares for every 5 shares already held at $0.04 per share. For every 2 new shares issued, shareholders will also receive one attaching option exercisable at $0.06 and expiring on 30 June 2025.
Bizzell Capital Partners — an entity associated with Savannah Goldfields Chairman Stephen Bizzell — acted as underwriter to the entitlement offer.
The funds raised will support near-term exploration at the Agate Creek and Georgetown gold projects, including a planned drilling program.
Further, a portion of the cash raised will be put towards expenditure on the ongoing mining activities at Agate Creek, specifically the Sherwood Pit 6 pre-strip.
Savannah will also use the money to support further upgrades and improvements at the Georgetown gold processing plant, as well as to partially repay its short-term debt facilities and for general working capital.
The entitlement offer represents an 11.1% discount to the company’s last closing price of $0.045 on 19 December 2023 and a 17.4% discount to its 15-day volume weighted average price (VWAP) of $0.0484 on the same date.
The entitlement offer is expected to close on 27 December at 5pm AEDT.
Savannah Goldfields is a gold mining company that holds a strategic portfolio of operating assets in North Queensland’s Gulf Savannah.
Write to Aaliyah Rogan at Mining.com.au
Images: Savannah Goldfields
