- Laneway Resources (LNY) has launched a fully underwritten entitlement offer to raise about $7.9 million
- The offer forms part of Laneway’s $11 million capital raise program, which also included a placement that raised $3.1 million
- Shares under the entitlement offer will be issued at 0.5 cents and for every two new shares issued, shareholders will receive on option exercisable at 0.8 cents each
- The money will be used for activities and exploration at the Agate Creek project, for the Masterson Minerals acquisition and for restart costs of the Georgetown processing plant
- Shares last traded at 0.6 cents on March 14
Laneway Resources (LNY) has launched a one-for-three fully underwritten entitlement offer to raise about $7.9 million.
The non-renounceable entitlement offer is part of the company’s capital raising program, which was announced at the start of the year. The program also included a placement that was completed last month and raised $3.1 million.
Under the offer, shares will be issued to eligible institutional and retail shareholders at a price of 0.5 cents, which represents a 20 per cent discount to the 15-day volume-weighted average price.
For every two new shares issued, the holder will also receive one option that’s exercisable at 0.8 cents with an expiry date of September 30, 2022.
According to the company, its largest shareholder, Chair Stephen Bizzell, intends to subscribe for his full entitlements of approximately $2 million in the entitlement offer. In addition, Laneway’s other directors have all committed to take up entitlements as well.
Combined with the funds raised from the placement, the money will be used for exploration and mining activities at the Agate Creek project, partially funding the Masterson Minerals acquisition and restart costs of the Georgetown processing plant, as well as to repay short-term borrowings and working capital costs.
Once the entitlement offer has been completed, Laneway would have raised $11 million under the capital raise program.
The company expects to remain in a trading halt until Thursday, March 17.
Shares last traded at 0.6 cents on March 14.