- Alta Zinc (AZI) has received firm commitments to raise around $3.6 million and will use the money for the Gorno Zinc Project in Italy
- Participating shareholders will also receive one free attaching option for every three shares issued
- Approximately 890.5 million shares will be issued at a price of 0.4 cents each
- Alta Zinc is also offering eligible shareholders the ability to participate in a share purchase plan with aims to raise up to $500,000
- Shareholders will be able to purchase up to $30,000 worth of shares at the price the same as the placement
- Alta Zinc is steady on the market today and shares have been trading for 0.5 cents each since June 12
Alta Zinc (AZI) has received firm commitments to raise around $3.6 million and will use the money for the Gorno Zinc Project in Italy.
Participating shareholders will also receive one free attaching option for every three shares issued.
These options will have an exercise price of one cent and will expire on January 31 2022.
The placement will be undertaken in two phases with phase one issuing around 550.5 million shares at a price of 0.4 cents to raise roughly $2.2 million.
This price represents a 20 per cent discount to Alta Zinc’s last traded price of 50 cents on June 22, and a 20 per cent discount to its five-day volume-weighted average price.
Phase two will consist of an extra 340 million shares to raise $1.4 million, however, this is subject to shareholder approval.
This phase includes 162.5 million shares and approximately 54.2 million options being issued to company Directors to raise $650,000.
A total of 177.5 million shares will then be issued to two institutions to raise $710,000.
Alta Zinc is also offering eligible shareholders the ability to participate in a share purchase plan with aims to raise up to $500,000.
Shareholders will be able to purchase up to $30,000 worth of shares at the price the same as the placement; 0.4 cents per share.
They will also receive one free attaching option for every three shares issued.
If commitments are received that pushes the target amount over $500,000, then Alta Zinc Directors can either scale back applications or increase the size.
“I am delighted with the overwhelming demand from institutional and sophisticated investors which is a strong endorsement of Alta’s flagship Gorno Zinc project and its team,” Managing Director Geraint Harris commented.
“We intend to build shareholder value through the exploration of our highly prospective zones of identified mineralisation and also to look for opportunities to step out our exploration into new areas,” he added.
Alta Zinc is steady on the market today and shares have been trading for 0.5 cents each since June 12.