- African Energy Resources (AFR) enters a trading halt while it plans a capital raise
- The company recently entered an option to earn a majority interest in the Briggs and Mannersley porphyry copper project in Queensland
- As part of this, AFR is undertaking sampling and drilling as part of its $750,000 expenditure commitment which needs to be met before the end of July 2022
- African Energy Resources expects to come out of the trading halt by November 25, by which time the capital raise details would have likely been released
- Company shares last traded at 4.4 cents on November 22
African Energy Resources (AFR) has entered a trading halt while it plans and executes a capital raise.
The materials stock hasn’t given any details on this, including how much it hopes to raise, nor how it will spend the funds.
In its September quarterly report, the company announced securing an exclusive option to earn up to a 70 per cent interest in the Briggs and Mannersley porphyry copper project in Queensland through a $1 million investment in ASX-listed Canterbury Resources (CBY).
The option is secured until July 31, 2022, by which time African Energy Resources would have needed to spend $750,000 on exploration work that has already commenced. This work includes soil sampling to refine drilling targets and a 3000-metre drilling program, with both expected to be completed before the end of the year.
In terms of its financial position, AFR spent $273,000 on operating activities and generated about $1.4 million (before costs) through a private placement. The company ended the quarter with $1.47 million in cash.
AFR expects to come out of the trading halt by November 25, by which time the capital raise details would have likely been released.
Company shares last traded at 4.4 cents on November 22.