- EQ Resources (EQR) receives firm commitments to raise $4.56 million in a well-supported placement
- The placement comes at 4 cents per share, with one free-attaching unlisted option for every four new shares subscribed and issued, exercisable at 6.5 cents each
- The company says the placement attracted both domestic and international interest from new and existing investors, and will be paid out in two tranches
- Subject to shareholder approval, EQR directors have committed to subscribe for $200,000 in the placement, with all funds to go towards the ongoing Mt Carbine expansion program
- EQ Resources is down 12.2 per cent, trading at 4.3 cents at 1:56 pm AEDT
EQ Resources (EQR) has received firm commitments to raise $4.56 million in a “well-supported” placement.
The share placement comes at 4 cents per share, with one free-attaching unlisted option for every four new shares subscribed and issued, exercisable at 6.5 cents each. The issue price marks an 18 per cent discount to the most recent closing price, and a 14 per cent discount to the 15-day VWAP.
The company said the placement attracted both domestic and international interest from new and existing investors, and will be paid out in two tranches.
Subject to shareholder approval, the directors of EQ Resources have also committed to subscribe for $200,000 in the placement.
“We are pleased having secured support from existing high-profile investors while at the same time seeing new investors joining the register,” EQR Chief Executive Officer Kevin MacNeill said.
EQR said the proceeds of the placement will go towards funding the ongoing Mt Carbine expansion program and additional drilling towards the open pit western extension.
“The work to date related to the upcoming bankable feasibility study update has highlighted significant upside potential in some areas, including the open pit western extension, which require additional work by the team,” Kevin MacNeill continued.
“In addition to the recently announced royalty funding currently being finalised, this placement allows us to bridge our cash flow as the Government grant documentation requires a few more weeks until completion.”
EQ Resources was down 12.2 per cent, trading at 4.3 cents at 1:56 pm AEDT.