- Accelerate Resources (AX8) receives firm commitments to undertake a $3.1 million placement
- More than 86.1 million fully-paid ordinary shares will now be issued to sophisticated and professional investors at 3.6 cents
- Accelerate will use the money to undertake exploration drilling and exploration activities at the Braeside West and Ripon Hills East Manganese projects
- Accelerate ends the day 2.38 per cent in the green with shares trading at 4.3 cents
Accelerate Resources (AX8) has received firm commitments to undertake a $3.1 million placement.
The company entered a trading halt on September 9 but did not disclose how much it intended to raise or what it would use the funds for once received.
A total of 86,111,111 fully-paid ordinary shares will be issued to sophisticated and professional investors at 3.6 cents.
The placement will be undertaken in two phases with phase one set to issue 38,899,440 shares to raise $1.4 million.
Phase two, which is subject to shareholder approval, will issue 47,211,671 shares to raise the remaining $1.7 million.
Also subject to shareholder approval, Accelerate’s board of directors will subscribe for $60,000 under phase two.
Accelerate will use the money to undertake due diligence exploration drilling and exploration activities at the Braeside West and Ripon Hills East Manganese projects.
Managing Director Yaxi Zhan commented on the placement.
“We are delighted to have received such strong support for this capital raising and we would like to take this opportunity to welcome those new investors to our register and thank those existing shareholders who participated in the placement for their ongoing support,” Ms Zhan said.
“This is an exciting period for the company as we transition to our critical metals focus and commence exploration activities on our East Pilbara manganese projects.”
Accelerate has ended the day 2.38 per cent in the green with shares trading at 4.3 cents in a $6.58 million market cap.