- Great Western Explorations (GTE) is looking to raise $800,000 to help with exploration of its gold tenements
- The money will be raised through a placement and entitlement issue
- As well as the placement and entitlement issue, Great Western has announced the appointment of Grey Egerton-Warburton and Ross Williams to the Board
- After the completion of the placement, Jordan Luckett and Terry Grammar will be stepping down from the Board
- Finally, Tony Walsh will be replacing Justin Barton as company secretary, and Justin will continue as financial controller
- Great Western shares have slumped 50 per cent and are trading for 0.1 cents each
Great Western Explorations (GTE) is looking to raise $800,000 to help with exploration of its gold tenements.
The money will be raised through a placement and an entitlement issue.
Hartleys has been appointed as sole lead manager.
“The capital raising is a very positive outcome from Great Western, in what is currently a challenging operating and financing environment for many explorative companies given the well-documented impact of COVID-19,” Chairman Kevin Somes commented.
“Importantly, we are pleased to have been able to structure the capital raising in a manner that will provide existing shareholders with the opportunity to participate in the capital raising through the entitlement issue,” he added.
However, before shares from the placement are settled and the entitlement issue is launched, Great Western will seek shareholder approval to combine its issued capital on the basis of one share for every 60 shares held.
This will reduce the number of shares on issue to create a more efficient capital structure.
Placement
Through the placement, approximately $200,000 will be raised through the issue of 20 million shares at a price of one cent per share.
The placement is subject to shareholder approval which will be sought after at the General Meeting which is planned to be held around the end of May.
Once completed, the shares are expected to be issued within five days of the consolidation.
Entitlement issue
After the placement, Great Western intends to launch an entitlement issue to raise the remaining money.
Eligible shareholders will have the opportunity to subscribe for three new shares for every two existing shares held at an issue price of one cent.
Approximately 61.3 million shares will be on offer to raise $613,175, before costs.
The entitlement issue is expected to open on June 16, close on June 30, and shares will be issued on July 7.
Corporate update
As well as the placement and entitlement issue, Great Western has announced the appointment of Grey Egerton-Warburton and Ross Williams to the Board.
Both Grey and Ross have significant management and corporate finance experience, and they will both participate in the placement and the entitlement issue.
After the completion of the placement, Jordan Luckett and Terry Grammar will step down from the Board, however, Jordan will continue to work with Great Western on a consultancy basis.
Finally, Tony Walsh will replace Justin Barton as company secretary, and Justin will continue as financial controller.
Great Western shares have slumped 50 per cent and are trading for 0.1 cents each at 12:56 pm AEST.