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- Junior explorer Sabre Resources (SBR) has tapped investors for almost $5 million through a share placement today
- The company told shareholders this morning it initially planned to raise $3 million by placing new shares at 1.15 cents each — a 5 per cent premium to Sabre’s last closing price
- However, Sabre actually received commitments for $4.8 million work of shares
- Each share under the placement comes with a free attaching option, exercisable at 0.8 cents by September 20, 2022
- Interestingly, Sabre did not specifically mention what it plans to use the fresh cash injection for
- Still, shareholders liked the raise, with Sabre shares currently up over 9 per cent and trading at 1.2 cents each
Sabre Resources (SBR) has tapped investors for almost $5 million through a share placement today.
The junior explorer said this morning it initially planned to raise $3 million through the placement, but ended up receiving binding commitments for $4.8 million worth of new shares.
Sabre will place just over 417 million new shares at 1.15 cents each to raise the funds. This price represents a 5 per cent premium to Sabre’s last closing price of one cent. Each new share comes with a free attaching SBR option, exercisable at 0.8 cents before September 20, 2022.
Sabre will also give 5 million options to Peak Asset Management, which acted as lead manager for the placement.
The capital raise will bump up SBR’s total share issue by roughly a third, with around 1.68 billion shares to be on issue once the placement has been completed.
This is not to mention the 422 million new options to be issued as part of today’s capital raise.
Interestingly, Sabre did not specifically mention what the new funding will be used for.
As a junior explorer, it’s likely the money will go towards exploration work across the company’s mining assets — particularly Sabre’s Bonzana and Beacon gold projects in the prolific Youanmi Goldfield in Western Australia.
Sabre also owns 70 per cent of the Sherlock Bay project in WA’s Pilbara region, as well as two tenements in the underexplored Otavi Mountain Land area in Namibia.
Shareholders seem happy with the premium placement, with Sabre shares up 9.09 per cent this morning and trading at 1.2 cents each at 11:00 am AEDT. The company has a $15.01 million market cap.
