- Blackstone Minerals (BSX) receives firm commitments to undertake a $55 million placement
- More than 94.8 million fully-paid ordinary shares will be issued to shareholders, priced at 58 cents each
- Blackstone will also be undertaking a share purchase plan to raise a maximum of $5 million
- The money will be used to construct and commission phase two of BSX’s pilot plant, complete feasibility studies and execute strategic investments
- Shares in Blackstone are down 13.7 per cent and are trading at 60 cents
Blackstone Minerals (BSX) has received firm commitments to undertake a $55 million placement.
The company entered a trading halt on October 28, but did not disclose how much it intended to raise or what it would use the funds for once received.
More than 94.8 million fully-paid ordinary shares will be issued to shareholders, priced at 58 cents each.
This price represents a 5.1 per cent discount to the 10-day volume-weighted average price.
Blackstone will also be undertaking a share purchase plan (SPP) to raise a maximum of $5 million.
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares which will be priced the same as the placement of 58 cents.
The SPP will open on November 4 and close on November 19 with shares to be issued on November 23.
Blackstone will primarily use the funds to construct and commission phase two of its pilot plant in Vietnam.
The money will also go towards completing feasibility studies, advancing exploration and executing strategic investments.
“Blackstone’s vertically integrated nickel sulphide project in Vietnam is a rare growth opportunity that received overwhelming interest during the book building process,” Managing Director Scott Williamson said.
“In the coming months the company will deliver updated and maiden resources for its key development targets at Ta Khoa. These targets are the basis of the soon to be completed pre-feasibility study for the upstream business unit.”
Shares in Blackstone were down 13.7 per cent and were trading for 60 cents at 2:49 pm AEDT.