Victory Goldfields (ASX:1VG) reports that it has received firm commitments from professional and sophisticated investors to raise $2 million (before costs) in an oversubscribed placement.
The company reports that it will issue of 10 million fully paid ordinary shares at $0.20 per share plus 5 million unlisted options with an exercise price of $0.30 and a maturity date 24 months from the date of issue. Each investor will receive 1 option for every 2 shares subscribed for under the placement.
The issue price of $0.20 is a 9.1% discount to the trading price of the company’s shares prior to the stock being placed in a trading halt on 20 September.
Funds raised will be used to advance rare earth element (REE) exploration at Victory Goldfields’ North Stanmore discovery in Western Australia.
Canaccord Genuity (Australia) has acted as lead manager to the placement and will receive a fee of 6% of all funds raised.
Commenting on the capital raise, Victory Executive Director Brendan Clark said: “This placement will assist the company to accelerate its emergence as a WA based multi-commodity explorer and continue its fresh direction into the rare earth element sector via the discovery at North Stanmore.
“This placement will assist the company to accelerate its emergence as a WA based multi-commodity explorer”
I’d like to thank existing shareholders for their continued support and we welcome our new investors to the register.”
The company also notes that proceeds from the placement will also be used to further advance exploration on its other projects, including the initial Mineral Resource Estimate (MRE) for its Coodardy project, located about 30km from the township of Cue.
In addition, assays received from the initial REE discovery confirm that mineralisation extends over 1km-square and remains open in all directions, with initial p-XRF results from current drilling returning potential regolith-hosted REE mineralisation 3km from the existing REE discovery.
Victory Goldfields is an Australian listed, emerging multi-commodity exploration company based in Perth, Western Australia and comprises an exploration portfolio centred around the township of Cue in WA’s Cue Goldfields.
The portfolio of assets comprises 50 tenements that cover a land holding of about 7,250 hectares in the region, which has a long and successful history of gold exploration and production.
The company’s 100% owned North Stanmore REE discovery is currently being tested for an emerging REE system about 3km from the initial clay hosted discovery, which returned REE grades of up to 3872ppm total rare earth oxides (TREO) at depth.
Subject to shareholder approval, shares are expected to be allotted at the company’s annual general meeting scheduled for 9 November this year.
Images: Victory Goldfields Ltd
