- Astro Resources (ARO) receives binding applications to undertake a $3.53 million share placement
- More than 838 million fully-paid ordinary shares will now be issued to sophisticated investors at 0.4 cents
- Subject to shareholder approval, participants will also receive two free attaching options, exercisable at 1 cent and expiring on April 21, 2022
- Astro will use the money to further develop its Needles Property and Governor Broome projects as well as take advantage of new gold opportunities in Nevada
- Shares in Astro are up 11.1 per cent on the market and are trading at 0.5 cents
Astro Resources (ARO) has received binding applications to undertake a $3.53 million share placement.
The company entered a trading halt on January 17 but did not disclose how much it intended to raise or what it would use the funds for.
Just over 838.3 million fully-paid ordinary shares will now be issued to sophisticated investors at 0.4 cents.
Subject to shareholder approval, participants will also receive two free attaching options, exercisable at 1 cent and expiring on April 21, 2022.
Major shareholder Holdmark Property Group is participating and has agreed to subscribe for 202 million shares, retaining its shareholding level at 19.9 per cent.
Astro will use the money to further develop its Needles Property and Governor Broome projects as well as take advantage of new gold opportunities in Nevada.
“The funds raised will enable Astro to continue with its Needles Gold Project drilling program and to further advance the Governor Broome HMS Project towards commercialisation,” Chairman Jacob Khouri said.
“In addition, the raising allows us to further explore the proposed Joint Venture in Nevada with Pediment LLC, which includes significant project generation opportunities in Nevada.”
Shares in Astro were up 11.1 per cent on the market and were trading at 0.5 cents at 1:14 pm AEDT.