- Aeon Metals (AML) secures commitments to undertake a two-phase placement to raise $9.5 million
- More than 163.7 million shares will now be issued to sophisticated and professional investors at 5.8 cents
- Aeon is also offering eligible shareholders the ability to participate in a share purchase plan to raise up to $3 million
- The company will put the money towards its ongoing pre-feasibility study and continuing extensional and infill resource drilling at the Walford Creek Project
- Aeon has ended the day 11 per cent in the red with shares trading at 6.5 cents
Aeon Metals (AML) has secured commitments to undertake a two-tranche placement to raise $9.5 million.
The company entered a trading halt on July 15 but did not disclose how much it intended to raise or what it would use the funds for.
More than 163.7 million shares will be issued to sophisticated and professional investors at 5.8 cents.
This represents a 20.6 per cent discount to Aeon’s close of 7.3 cents on July 14 and a 21 per cent discount to the five-day volume-weighted average price.
Additionally, all members of Aeon’s board have subscribed for the placement, comprising of $100,000, however, this is subject to shareholder approval.
Aeon is also offering eligible shareholders the ability to participate in a share purchase plan to raise up to $3 million.
More than 51.7 million shares will be on offer at 5.8 cents and applications may be scaled back if demand exceeds $3 million.
The plan is expected to open on July 28 and close on August 18. Shares will be issued on August 24 and begin trading on the ASX on August 25.
Aeon will put the money towards its ongoing pre-feasibility study (PFS) and continuing extensional and infill resource drilling at the Walford Creek Project.
CEO and Managing Director Dr Fred Hess is pleased with the support received as it allows the company to undertake drilling programs.
“Aeon is currently advancing both its site drilling campaign and metallurgical testwork to support the Walford Creek PFS, which is expected to be completed during Q1 CY2022,” Dr Hess said.
“We also intend to move quickly to commence a regional exploration program, primarily focused on our substantial tenement package to the east of Walford Creek, the Basin Edge Project, and our tenements to the west of Mt Isa, prospective for iron oxide copper gold and sedimentary copper style targets.”
Aeon has ended the day 11 per cent in the red with shares trading at 6.5 cents in a $49.46 million market cap.