- Great Northern Minerals (GNM) receives commitments to undertake a two-phase placement to raise $3 million
- A total of 500 million new shares will now be issued to sophisticated and professional investors at 0.6 cents
- Phase one will issue 300 million shares to raise $1.8 million while phase two, which is subject to shareholder approval, will issue 200 million shares to raise $1.2 million
- Great Northern will use the money to continue drilling the Camel Creek Gold Project and the Mikes Anomaly at the Big Rush Gold Mine, both of which are in Queensland
- Shares in Great Northern are down 14.3 per cent on the market and are trading at 0.6 cents
Great Northern Minerals (GNM) has received commitments to undertake a two-phase placement to raise $3 million.
A total of 500 million new shares will now be issued to sophisticated and professional investors at 0.6 cents, representing a 23 per cent discount to the 15-day volume-weighted average price.
Phase one will issue 300 million shares to raise $1.8 million while phase two, which is subject to shareholder approval, will raise the other $1.2 million through the issue of 200 million shares and 40 million lead manager options.
CPS Capital Group will act as Lead Manager and will receive a two per cent management fee of the total amount raised and a four per cent placing fee.
Once received, Great Northern will use the money to continue drilling the Camel Creek Gold Project and the Mikes Anomaly at the Big Rush Gold Mine, and test the high-grade zones at Golden Cup.
The money will also be used to calculate an initial resource estimate at Camel Creek and then a mining and processing scoping study.
Managing Director Cameron McLean commented on the placement.
“With a number of important milestones scheduled for early 2022, it is highly encouraging to complete this oversubscribed capital raise as we set to build from a very active 2021,” Mr McLean said.
Shares in Great Northern were down 14.3 per cent on the market and were trading at 0.6 cents at 12:32 pm AEDT.