- AuTECO Minerals (AUT) receives firm commitments to raise up to $20 million via a share placement
- A total of 250 million new shares will now be issued to domestic and international institutions at eight cents
- Once received, AuTECO will use the money to fund the ongoing drilling program at its Pickle Crow Project in Canada
- Additionally, Executive Chairman Ray Shorrocks and Non-Executive Directors Steve Parsons and Michael Naylor intend to sell shares in the company for $4.2 million
- Shares in AuTECO are down 3.57 per cent on the market and are trading at 8.1 cents
AuTECO Minerals (AUT) has received firm commitments to raise up to $20 million via a share placement.
The company entered a trading halt on February 17 but did not disclose how much it intended to raise or what it would use the funds for once received.
A total of 250 million new shares will now be issued to domestic and international institutions at eight cents.
This price represents a 4.8 per cent discount to AuTECO’s closing price of 8.4 cents on February 16 and a 13 per cent discount to the 10-day volume-weighted average price.
Once received, AuTECO will use the money to fund the ongoing drilling program at its Pickle Crow Project in Canada.
“The strong demand for the placement and the quality of the institutions which subscribed reflects our exploration success at Pickle Crow and the outlook for further growth,” Executive Chairman Ray Shorrocks said.
In addition to the placement, Mr Shorrocks and Non-Executive Directors Steve Parsons and Michael Naylor intend to sell shares in the company at the offer price of eight cents.
This sell-down will sell down roughly 52.5 million shares at a value of $4.2 million and will result in up to 14.9 per cent of the Directors holdings and 2.6 per cent of the current share capital of AuTECO being sold.
Part of the proceeds from the sell-down will be used to fund the exercise of options in the company, with the Directors expected to maintain or grow their aggregate shareholding in AuTECO on completion of the option exercise.
Shares in AuTECO were down 3.57 per cent on the market and were trading at 8.1 cents at 1:45 pm AEDT.