- Equus Mining (EQE) is looking to raise up to $7.5 million through a placement and share purchase plan
- The $7 million placement will be conducted over two tranches and, all up, will issue over 636.3 million shares at 1.1 cents
- While the first tranche has received firm commitments, Equus must get shareholder approval to complete the second tranche
- Additionally, eligible shareholders may subscribe for up to $30,000 worth of shares under the share purchase plan to raise $500,000
- Equus Mining will use the funds to advance exploration and production at the Cerro Bayo Project in Chile
- Equus is up 9.09 per cent with shares trading at 1.2 cents
Equus Mining (EQE) has received firm commitments to raise $7 million through a placement to institutional and sophisticated investors.
The company will issue 636,363,636 fully paid ordinary shares at 1.1 cents per share which represents a 1.03 per cent discount to the five-day volume-weighted average price.
The placement will be conducted over two tranches, with the first issuing 431,390,000 shares to raise $4,745,290. The second tranche will include the issue of 204,973,636 shares to raise $2,254,710 but this is subject to shareholder approval.
In addition, Equus is looking to raise another $500,000 through a share purchase plan (SPP).
Eligible shareholders will be able to subscribe for up to $30,000 worth of shares at the same issue price of the placement. The SPP will be open from May 24 until June 11.
Equus Mining intends to use the $7.5 million to develop the Cerro Bayo Project in Chile.
Specifically, the miner plans to increase mineral resources, continue drilling programs, progress mine restart and ore sorting studies, and advance the nearby Los Domos and Cerro Diablo projects.
The Cerro Bayo Project is held under a three-year option agreement to acquire a 100-per-cent interest in it from Mandalay Resources.
The Chilean project contains a 500,000 tonnes per annum processing plant which historically produced 645,000 ounces of gold and 45 million ounces of silver until the mine’s temporary closure in 2017.
Equus is up 9.09 per cent with shares trading at 1.2 cents at 12:24 pm AEST.