- Broken Hill Prospecting (BPL) is set to raise $496,500 for its La Paz Rare Earth Project in Arizona
- Approximately 27.1 million shares will be issued to sophisticated and professional investors at a price of $0.015 to raise $406,500
- The remaining $90,000 will be raised through a one for eight basis, however, this is subject to shareholder approval
- Broken Hill will use the money to fund the exploration, expansion, and economic evaluation of the La Paz Rare Earth Project
- Broken Hill is down 12.5 per cent and shares are trading for 2.1 cents each just before market close
Broken Hill Prospecting (BPL) is set to raise $496,500 to accelerate its La Paz Rare Earth Project in Arizona.
Approximately 27.1 million shares will be issued to sophisticated and professional investors at a price of $0.015 per share to raise $406,500.
These shares are expected to be issued around June 15 and then begin trading on the ASX on June 16.
To raise the remaining $90,000, six million shares, on a one for eight basis, will be issued to shareholders after February 24 2021.
However, this is subject to shareholder approval and the term that the shareholder takes part in the placement and holds onto the shares until this date.
Broken Hill will use the money to fund the exploration, expansion, and economic evaluation of the La Paz Rare Earth Project, and general working capital.
The La Paz Rare Earth Project is located in Arizona, approximately 170 kilometres northwest of Phoenix and it covers an area of more than 1100 hectares.
Rare earth elements were first discovered in the middle of 2010 and in 2011, a maiden resource estimate was calculated.
The project is exposed at surface and it remains open at depth.
Broken Hill is down 12.5 per cent and shares are trading for 2.1 cents each just before market close.