- Greenstone Resources (GSR) receives firm commitments to raise up to $4.93 million through a placement
- Split into two tranches, the placement will issue up to 116 million shares at 4.25 cents each to professional and sophisticated investors
- Greenstone says the funds will go towards exploration activities at the Mt Thirsty, Burbanks, and Phillips Find projects
- GSR shares are up 12.5 per cent and are trading at 5.4 cents at 12:58 pm AEST
Greenstone Resources (GSR) has received firm commitments to raise up to $4.93 million through a placement.
Greenstone will issue professional and sophisticated investors 116 million fully-paid ordinary shares at 4.25 cents each. The issue price represents a 13.7 per cent discount to the 15-day volume-weighted average price of the trading price on Monday, May 30.
The placement will be split into two tranches with the first to raise $3.97 million through the issue of 93.5 million shares. The second tranche, subject to shareholder approval, will raise the remaining $960,000 by issuing 22.5 million shares.
The capital raise also attracted the interest of a mining investor who’ll commit to 45 million shares in the company, which on completion will represent 4.3 per cent of the fully-paid ordinary shares on issue.
Managing Director and CEO Chris Hansen was pleased to have received strong support from professional and sophisticated investors.
“Greenstone is at transformational point, simultaneously growing the high-grade inventory at our flagship Burbanks gold project, while also maintaining aggressive exploration activities at both Mt Thirsty and Phillips Find,” he said.
The materials stock will allocate the funds towards exploration activities at the Mt Thirsty, Burbanks, and Phillips Find projects.
Specifically, Greenstone submitted a program of work application for a 5000-metre reverse circulation drilling program at Mt Thirsty. The program will test for southeastern extensions to the prospective geological horizon identified by Galileo Mining (GAL). GSR expects to begin drilling in the next six to eight weeks.
As for the other projects, drilling is ongoing at Burbanks North to target a resource update and a 2000-metre drilling program will be conducted at Phillips Find.
GSR shares were up 12.5 per cent and were trading at 5.4 cents at 12:58 pm AEST.