- Aston Minerals (ASO) receives firm commitments to raise $29.25 million via a flow-through share placement
- Under the flow-through placement, more than 105.48 million shares will be issued at 20.44 cents to raise $21.55 million
- Aston will raise the remaining $7.75 million via the issue of more than 53.44 million shares to Australian sophisticated and professional investors at a price of 14.5 cents
- The company will use the funds to complete resource definition drilling at the Bardwell prospect and undertake further drilling at the Boomerang target
- Shares in Aston are down 3.13 per cent and are trading at 15.5 cents
Aston Minerals (ASO) has received firm commitments to raise $29.25 million via a flow-through share placement.
Under the flow-through share placement, a total of 105,485,232 shares will be issued at a price of 20.44 cents to raise $21.55 million.
The price of 20.44 cents represents a 27.8 per cent premium to Aston’s last closing price.
The flow-through placement provides tax incentives to eligible Canadian investors for spending that qualifies as flow-through mining expenditure under the Canadian Income Tax Act.
Aston will raise the remaining $7.75 million via the issue of 53,448,276 shares to Australian sophisticated and professional investors at a price of 14.5 cents.
Executive Chairman Tolga Kumova has subscribed for $2.5 million and Corporate Director Rob Jewson has subscribed for $250,000, however, both are subject to shareholder approval.
Aston will use the $29.25 million to advance its Edleston project in Ontario, Canada. It will complete resource definition drilling at the Bardwell prospect, undertake further drilling at the Boomerang target and increase the size of the drilling program to four diamond rigs.
“With the increased funding, we will be phasing into having three rigs operating at Bardwell and a fourth rig alternating between additional prospects within the Boomerang target and gold prospects,” Mr Kumova said.
“The company is now in a strong financial position to deliver on its objectives to define a potentially globally significant nickel-cobalt sulphide deposit within a Tier 1 mining jurisdiction.”
Shares in Aston were down 3.13 per cent and were trading at 15.5 cents at 12:32 pm AEDT.