- Gold and base metals explorer First Au (FAU) successfully raises $1.84 million via a share placement
- The funds were reaised via the issue of more than 153 million fully-paid ordinary shares to sophisticated and professional investors at 1.2 cents
- First Au also proposes a share purchase plan (SSP) to raise up to an additional $450,000 from existing eligable shareholders
- The money from both the placement and SPP will be used to accelerate exploration activities, primarily at the company’s priority projects in Victoria and South Australia
- First Au ends the day 14.3 per cent in the red with shares trading at 1.2 cents
Gold and base metals explorer First Au (FAU) has successfully raised $1.84 million via a share placement.
The company entered a trading halt on Monday but did not disclose how much it intended to raise or what it would use the funds for.
The funds were raised through the issue of 153,657,188 fully-paid ordinary shares to sophisticated and professional investors at 1.2 cents.
This price represents a 15.69 per cent discount to the 15-day volume-weighted average price.
First Au will also issue one free attaching option for every two shares subscribed for, exercisable at two cents with expiry on July 1, 2023, subject to shareholder approval.
The company has also proposed a share purchase plan (SPP) to raise up to $450,000.
Eligible shareholders will be able to apply for up to $30,000 worth of shares which will be priced the same as the placement at 1.2 cents.
For every two SPP shares subscribed for, participants will receive one free attaching option, with the same terms as the placement options.
First Au will use the money from both the placement and SPP to accelerate exploration activities, primarily at its priority projects in Victoria and South Australia.
Executive Chairman and Managing Director Bryan Frost commented on the placement.
“These funds will allow exploration at our Victorian projects to accelerate progress over the next six to 12 months,” Mr Frost said.
“In addition to the current drilling that is ongoing at the Snowstorm Project in Victoria, this funding will let us move towards commencing drilling at the highly prospective Haunted Stream and Dogwood Projects early in 2022.”
First Au has ended the day 14.3 per cent in the red with shares trading at 1.2 cents in a $7.37 million market cap.