- Laneway Resources (LNY) completes first stage of a capital raising program, pocketing $1.9 million to support exploration activities
- Under an initial placement, 379 million shares were issued at a price of 0.5 cents each to sophisticated and institutional investors
- Every two shares issued will come with one free attaching option, exercisable at 0.8 cents per share until September 30, 2022
- The company is also proposing to raise a further $4.5 million through an entitlement offer, plus another $1 million through a second placement
- Shares are trading flat today at 0.6 cents each
Laneway Resources (LNY) has completed the first stage of its capital raising program, pocketing $1.9 million to support its exploration activities.
Under an initial placement that closed last week, 379 million new shares will be issued to sophisticated and institutional investors at a price of 0.5 cents each.
Every two new shares issued will also come with one free attaching option, exercisable at a price of 0.8 cents per share until September 30, 2022.
According to today’s announcement, the funds will be used to support near-term exploration work, including the current drilling program that’s been designed to follow-up on targets identified during a recent multi-element study.
The proceeds will also be used for the partial repayment of short-term loans and to cover the costs of the capital raising.
Looking ahead, Laneway is potentially looking to raise a further $4.5 million through an entitlement offer, as well as another $1 million through a proposed second placement.
Laneway says a prospectus for the entitlement offer will be lodged to ASIC and the ASX in the coming weeks.
Shares in Laneway Resources were trading flat today at 0.6 cents each as of 10:12 am AEDT.