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Argonaut Resources (ASX:ARE) raises $2.7M for copper exploration

Mining
ASX:ARE
24 September 2020 03:00 (AEST)
Argonaut Resources (ASX:ARE) - CEO & Director, Lindsay Owler

Source: YouTube

Argonaut Resources (ARE) has successfully completed its share placement and raised $2.7 million.

491.6 million fully paid ordinary shares will now be issued to professional, sophisticated, and institutional investors at 0.55 cents each.

This price represents a 21 per cent discount to the closing price of 0.70 cents on September 18, a 17 per cent discount to the five-day volume-weighted average price of 6.7 cents, and a 24 per cent discount to the 15-day volume-weighted average price 7.3 cents.

Shares will settle on September 30, and be allocated and begin trading on the ASX on October 2.

Argonaut will also undertake a share purchase plan to raise an additional $1.2 million.

The company has the right to either accept oversubscriptions or close it early and scale back applications.

The plan will open on September 25 and close on October 16.

“The funds raised by the placement and share purchase plan will allow Argonaut to execute planned drilling at its 100 per cent held Murdie copper project in South Australia,” CEO and Director Lindsay Owler said.

“Argonaut will also restart scoping metallurgical testwork on its 90 per cent held Nyungu copper-cobalt deposit at Lumwana West in North-western Zambia,” he added.

Argonaut has ended the day with no change and shares trading for 0.7 cents each in a $13.76 million market cap.

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