AuStar Gold Limited (ASX: AUL, or the Company) has recently announced a hugely successful share placement of $4M.
The Placement will raise $4m via the issue of 13,333,334 new fully paid ordinary shares (New Shares) at $0.30 per New Share (Offer Price) in the Company to institutional, sophisticated and professional investors.
Highlights:
- Binding commitments from institutional, sophisticated and professional investors of $4m received, for the issue of 13,333,334 shares at $0.30 per Share;
- The Placement was heavily oversubscribed with bids of approximately A$6.7m received
The Offer Price of A$0.30 represents a discount of 13% to the Company's last closing price of $0.345, a 14% discount to the Company's 15 day volume-weighted average price (VWAP) of $0.349 and a 14% discount to the 30 day VWAP of $0.3497.
New shares will be issued to Placement participants on or around 26 April 2021 and are within the Company's placement capacity under Listing Rules 7.1 (8,159,603 shares) and 7.1A (5,173,731 shares). New shares will rank equally with existing fully paid shares of the Company. No new shares were issued or agreed to be issued in the Placement to a related party, or otherwise to any person referred to in Listing Rule 10.11.
Use of Funds:
Funds raised from the Placement will be used for:
- Transaction costs associated with the White Rock Minerals (WRM) Scheme of Arrangement;
- In-mine exploration drilling to ensure a robust minable inventory;
- Regional exploration;
- Surface Infrastructure;
- The costs of the Placement; and for
- Working capital and general corporate purposes.
Read the full announcement here.
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