Join our daily newsletter At The Bell to receive exclusive market insights
- Inca Minerals (ICG) is planning to raise $7.5 million via a two-for-three renounceable rights issue
- New shares are priced at 5.5 cents each, an 8.3 per cent discount to the stock’s last traded price
- For every three new shares issued, shareholders will receive two listed options, with an exercise price of nine cents and 20 cents, respectively
- The company first flagged the fundraise at the end of last week, locking up its shares in a trading halt
- Shares are now being trading again, down 6.56 per cent and trading for 5.7 cents just before market close
Junior resource company Inca Minerals (ICG) has announced the details of its recently flagged capital raise, seeking $7.5 million from shareholders.
Inca plans to raise the funds via a two-for-three renounceable rights issue for eligible shareholders.
The new shares on offer will be priced at 5.5 cents each — which represents an 8.3 per cent discount to the stock’s last traded price.
Additionally, for every three new shares issued, shareholders will receive two listed options.
The first option will have an exercise price of nine cents and will expire by July 31 2021.
While the second option will have an exercise price of 20 cents and an expiry date of October 31 2023.
Inca Managing Director Ross Brown said the capital raised through the rights issue will go towards advancing drilling work at its Australian and overseas projects.
“After a long phase of partner-funded drill target generation, the company is
readying for drilling at our flagship Riqueza Project, located in Peru,” he explained.
“Riqueza hosts over two dozen very high-quality drill targets that are prospective for large-scale gold-silver-copper mineralisation,” he added.
“Like Riqueza, our new Queensland and the Northern Territory projects are
prospective for large-scale forms of mineralisation―all with known ‘walk-up’ targets and with tremendous upside potential,” he concluded.
Inca first flagged the idea of tapping shareholders for fresh capital at the end of last week, locking its shares up in a trading halt.
Following the announcement of the details of the fundraise today, the trading halt has been lifted.
Shares in Inca Minerals are down 6.56 per cent and trading for 5.7 cents just before market close.
