- Helix Resources (HLX) is looking to raise $13 million through a placement and share purchase plan (SPP)
- A total of 916.7 million shares will be issued over the two-tranche placement to raise $11 million with shares to be priced at 1.2 cents
- The company hopes to raise an additional $2 million through the SPP which allows eligible shareholders to subscribe for up to $30,000 worth of shares
- Helix plans to use the money for drilling and other exploration activities at its projects within the Cobar region of New South Wales
- Company shares have dipped 10 per cent in the red to trade at 1.4 cents
Helix Resources (HLX) has announced plans to raise up to $13 million through a placement and share purchase plan to accelerate its copper exploration exploration in western New South Wales.
Helix will use the money for drilling and other exploration activities at the Rochford, Canbelego, and Collerina projects in the Cobar region. Some of the money will be used for general working capital purposes.
The company is looking to raise $11 million in a two-tranche placement through the issue of 916.7 million shares and has already received binding commitments from investors.
Under tranche one, Helix expects to raise $3.8 million through the issue of 319.6 million shares at 1.2 cents each. The issue price represents a 20 per cent discount to the last closing price on March 11.
Tranche two, which is subject to shareholder approval, will seek to issue a further 597 million shares to raise the other $7.2 million.
The placement is expected to be completed in early May.
According to the company, the placement received strong demand and was well supported by institutional investors.
“I am extremely heartened by the strong support we have received for this equity raising, particularly from some of the major names in the institutional mining and resources investment community, which further validates our unwavering efforts and exploration objective in the Cobar region to build copper inventory and demonstrate a development pathway,” Managing Director Mike Rosenstreich said.
In addition to the placement, Helix hopes to raise a further $2 million through a share purchase plan (SPP) to allow shareholders to subscribe for up to $30,000 worth of shares at the same price as the placement.
The board reserves the right to close the SPP offer early once it receives at least $2 million of subscriptions.
Helix shares were down 10 per cent to trade at 1.4 cents at 11:06 am AEDT.