MINOTAUR Exploration has successfully completed a placement to raise A$1.5m to back its base metals tenements in Queensland and South Australia.
New shares will be issued at $0.05 per share, representing around a 9pc discount to last close (on October 30, 2019) and around a 12pc discount to the 15-day volume weighed average price (VWAP) of $0.057.
Minotaur managing director Andrew Woskett said that the investor support seen in the placement validated the company’s prospects, with the proceeds to be applied across Minotaur’s base metals exploration projects.
“Works will include drilling for the Windsor JV plus drill targeting at Minotaur’s wholly-owned Peake and Denison, and Highlands projects,” Mr Woskett said.
Around $0.950m of the placement will be spent at the Windsor prospect, with $0.125m allocated to the Peak and Denison prospect and $0.1m for Highlands.
The remaining $0.325m will be allocated to working capital and issues expenses.
“Alongside the non-recourse loan arrangement at Jericho (where Minotaur is fully funded to production by Oz Minerals), Minotaur is well positioned to accelerate its exploration efforts and unlock value across its range of promising projects.”
New shares under the placement will be issued in two tranches: tranche one will include the unconditional placement of 21.2m shares issued under the company’s existing placement capacity (pursuant to ASX Listing Rule 7.1 and 7.1A) to raise about $1m), and tranche two includes the conditional placement of 8.8m shares to raise about A$0.5m – which is subject to shareholder approval at the general meeting of Minotaur’s shareholders in December.
