Join our daily newsletter At The Bell to receive exclusive market insights
- Junior explorer Zenith Minerals (ZNC) is set to raise roughly $5 million in an oversubscribed share placement to institutional and sophisticated investors
- The company will place 51 million new shares at 10 cents each to raise $5.1 million
- The issue price is a 13 per cent discount to Zenith’s 15-day volume-weighted average price
- The new money will help fund a major exploration program across its core projects, including ongoing drilling at the Red Mountain Gold Project in Queensland and a new program at the Split Rocks project in WA
- Shares in Zenith lost just under two per cent today to close worth 12 cents each
Junior explorer Zenith Minerals (ZNC) has successfully tapped institutions and sophisticated investors for roughly $5 million in an oversubscribed share placement.
The company revealed today it will place 51 million new shares at 10 cents a pop to raise $5.1 million. The new shares come at a nifty 13 per cent discount to Zenith’s 15-day volume-weighted average price and will bring the company’s total share issue to just under 300 million shares.
According to Zenith, the new funds will go towards a major exploration program across its core gold projects. Specifically, Zenith will keep drilling at the Red Mountain Gold Project in Queensland and kick off a new program at its Split Rocks gold and lithium project in Western Australia. The new Split Rocks drilling is slated to begin in early July.
On top of this, Zenith will carry out some geochemical programs at its Flanagans and Develin Creek projects, also in Queensland.
Zenith Managing Director Mick Clifford welcomed new investors and thanked existing shareholders for their support.
“We are very pleased by the significant support for the placement, reflecting strong investor interest in the company, its gold exploration projects, and the optionality that our wide exploration portfolio provides,” Mick said.
Today’s capital raise comes after a string of good news from the company, including encouraging results from the maiden reverse circulation (RC) drilling program at Red Mountain. Among the best results was a 14-metre intersection grading 5.5 grammes per tonne of gold, which included a six-metre intersection grading 12.3 grammes per tonne of gold from surface.
Shares in Zenith lost 1.71 per cent today to close worth 12 cents each. The company has a $27.99 million market cap.
