Strategic Energy shares up 50% as it pockets $2 million

Shares in Strategic Energy Resources (ASX:SER) were up 50% at midday today following the completion of a $2 million capital raise that saw “significant excess demand”.

More than 181 million shares were issued to investors, including Datt Capital and Lowell Resources Fund, at $0.011 each — an 8.3% discount to Strategic Energy’s last price of $0.012 per share.

The placement will be settled in two tranches, with the first of 121 million — worth $1.23 million — to be issued at the end of May. A second tranche of 69 million shares — worth $766,000 — will be issued thereafter, subject to shareholder approval.

Bell Potter Securities acted as the sole lead manager and bookrunner to the placement, and will receive 6% of the total amount raised along with 6 million options, exercisable at $0.017 for a period of two years.

In connection with the placement, Datt Capital has nominated partner and head of research Tony Gu to the board of Strategic Energy as a non-executive director, effective from today, 23 May. 

Gu holds a Masters in Applied Finance from Monash University and a Bachelor of Commerce from the University of Melbourne. He is a graduate of the Australian Institute of Company Directors and an associate of the Australian Institute of Mining and Metallurgy.

The proceeds from the placement will be used to explore Strategic Energy’s South Cobar Project in New South Wales, including the Achilles 1 polymetallic prospect.

David DeTata, Managing Director of Strategic Energy, says the strength of demand for the placement is a clear signal that the Achilles 1 prospect needs to be drilled.

“The outstanding drill results from Australian Gold & Copper (ASX:AGC) to the north at Achilles 3 shows the potential for the South Cobar region to hold multiple discoveries and with the funds received we are now fast-tracking our exploration plans,” DeTata explains.

“Datt Capital identified SER’s strategy of science-driven project generation and exploration in pursuit of tier-one discoveries as a point of difference and has continued to back us as we execute this strategy. The addition of Tony Gu to the board further strengthens Datt Capital’s commitment to, and alignment with, SER.”

Shares in Strategic Energy Metals were up 50% to $0.018 per share as of 12:11pm AEST.

Write to Oliver Gray at Mining.com.au

Images: Strategic Energy Resources
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Written By Oliver Gray
Originally from Perth, Oliver has a keen interest long-form journalism. He has written for a number of publications and was most recently Contributing Editor of The Market Herald’s opinion section, Art of the Essay.