Join our daily newsletter At The Bell to receive exclusive market insights
- Astron Corporation (ATR) receives binding commitments to raise $5 million via a $4 million placement and $1 million director loan conversion
- Under the placement, more than 7.4 million CDIs will be issued at 54 cents each while more than 1.8 million CDIs will be issued under the director loan conversion
- Astron will use the money to advance activities at the Donald project in Victoria
- Astron ends the day five per cent in the red to close at 57 cents
Astron Corporation (ATR) has received binding commitments to raise $5 million via a $4 million placement and $1 million director loan conversion.
Under the placement, 7,407,409 fully-paid CHESS Depository Instruments (CDIs) will be issued to new and existing institutional and sophisticated investors at 54 cents each.
This price represents a 10 per cent discount to Astron’s closing price prior to the placement and a 9.5 per cent discount to the 10-day volume-weighted average price.
Under the director loan conversion, 1,851,851 CDIs will be issued at the same price as the placement of 54 cents.
Astron directors strongly supported the placement and director loan conversion with Chair George Lloyd contributing $365,000 and non executive directors Gerard King and Mark Elliot subscribing for $1 million and $50,000, respectively.
Managing Director Tiger Brown will look to convert his remaining $1 million of director loans at the same price as the placement.
Astron will use the money to advance the Donald rare earth and minerals sands project in Victoria.
Specifically, the money will be used to finalise the mineral resource which is taking into account the finer fraction and rare earth collection of the ore body.
The money will also be used to complete mine planning, infrastructure and the processing plant, and advance the final environmental approvals.
Astron has ended the day 5 per cent in the red to close at 57 cents.
