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Aeon Metals (ASX:AML) eyes $19.7m for Walford Creek

ASX News, Materials
ASX:AML      MCAP $7.675M
09 May 2022 17:26 (AEST)
Aeon Metals (ASX:AML) - CEO and Managing Director, Dr Fred Hess

Source: Aeon Metals

Aeon Metals (AML) has received commitments from sophisticated and professional investors to undertake a $7.2 million two-tranche placement.

Under phase one of the placement, 76.95 million shares will be issued at four cents to raise $3,078,000, before costs.

Phase two, which is subject to shareholder approval, will see 102,299,455 shares, also at a price of four cents, to raise $4,091,978.

OCP Group will reaffirm its holding in Aeon by participating in the placement with up to a 45 per cent holding.

The issue price of four cents represents an 11.1 per cent discount to Aeon’s closing price of 4.5 cents on May 4 and a 15.8 per cent discount to the five-day volume-weighted average price.

Aeon will also be undertaking a one for three non-renounceable entitlement offer to raise up to $12.5 million.

Shares will be priced the same as the placement of four cents and OCP will take up its pro-rata entitlement and subscribe for $1.2 million.

Shares issued under both the placement and entitlement offer will attract a one for two loyalty option, exercisable at eight cents with expiry on December 31, 2023.

Aeon will use the money from both the placement and entitlement offer to support the two drill rigs and the associated drilling program at the Walford Creek Project in Queensland.

Aeon ended the day down 13.3 per cent on the market at 3.9 cents.

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