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- Barra Resources (BAR) has received firm commitments to raise approximately $1.48 million through its recently announced share placement
- Under the placement, the company will issue approximately 78.1 million of its new shares at 1.9 cents per share
- Barra Resources will use the proceeds to fund a 13,000-metre drill program at its gold projects in Coolgardie
- In the coming weeks, the company also expects to receive a repayment of approximately $407,000 from Conico
- Barra Resources closed in the grey for 2.4 cents per share
Barra Resources (BAR) has received firm commitments to raise approximately $1.48 million through its recently announced share placement.
The company entered a trading halt on September 8, in anticipation of the capital raise with institutional, sophisticated, and professional investors. That trading halt on company securities will now be lifted, as a result of this announcement.
Under the placement, Barra Resources will issue approximately 78.1 million of its new shares, at 1.9 cents per share. The new shares which are issued through the placement will rank on an equal footing with existing fully paid ordinary shares.
Settlement of the newly issued shares should take place on September 16, 2020, with quotation occurring on the following day.
The proceeds from the placement will be used to fund a 13,000 metre drill program at Barra Resources’ gold projects in Coolgardie, Western Australia. These refer to, in particular, the Burbanks and Philip Find gold projects.
Barra Resources’ Chairman, Gary Berrell, commented on the company’s latest capital raise.
“We are particularly pleased with the support from new institutional investors and existing shareholders including Barra’s largest shareholder FMR Investments, which demonstrates the quality of the company’s high-grade Coolgardie gold assets,” he said.
“Our drilling targets at Burbanks are locked in and our geological team eagerly awaits commencement of drilling in October,” he added.
In addition to receiving the proceeds of the institutional placement, Barra Resources is also expecting another payment soon.
In October 2019, the company loaned Conico, a joint venture partner, $393,000. This allowed Conico to complete a pre-feasibility study on the companies’ jointly owned Mt Thirsty cobalt nickel project near Norseman, WA.
Having raised over $2.8 million through a placement of its own, Conico must now repay the loan to Barra Resources, with interest.
The company expects Conico to pay them approximately $407,000 in the coming weeks.
Barra Resources closed in the grey for 2.4 cents per share.
