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AIC Mines (ASX:A1M) to launch capital raising plan this week

The Market Online Deal Room
ASX:A1M      MCAP $233.5M
01 July 2020 10:10 (AEST)

Gold and copper explorer AIC Mines (A1M) is gearing up to raise some extra cash through a share placement and entitlement offer.

The company entered into a trading halt today which is set to last until Friday, July 3, as it plans to launch the capital raise. While the details of the plan have not yet been revealed, AIC said the placement will be to institutional investors.

Over 2020 so far, AIC has been taking on some exploration work at its Lamil and Marymia copper-gold projects in Western Australia.

During the last quarter, in particular, the company completed some important geological work at Lamil and outlined several drill targets in the project area. On top of this, AIC received an exploration licence for the northern half of Lamil in June, with the planning phase for a maiden drilling program at the target well underway.

At Marymia, AIC finished its first drilling program at the 4G Hill prospect in the project area in June.

According to AIC’s latest quarterly report, the company had just over $5 million cash in the bank at the end of March. Thus, given the ongoing geological work and early-stage drilling across its WA projects since then, it’s likely the upcoming capital raise will provide some funding to get ready for some more substantial drilling in the near future.

Whether or not retail investors will have a chance to top up in the entitlement offer is not yet known, but details will be revealed over the next few days.

Shares in AIC Mines closed worth 30 cents each yesterday afternoon. The company currently has a $15.86 million market cap.

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