- Lefroy Exploration (LEX) receives firm commitments to raise $6 million via a share placement
- A total of 18 million fully-paid ordinary shares will be issued to sophisticated and institutional investors at 35 cents
- Subject to shareholder approval, Lefroy directors will participate in the placement for a total of $300,000
- Lefroy will use the money to speed-up exploration at its Eastern Lefroy Gold Project with a priority focus at the Burns prospect
- Lefroy ends the day in the grey with shares trading at 41 cents
Lefroy Exploration (LEX) has received firm commitments to raise $6 million via a share placement.
The company entered a trading halt on November 8 but did not disclose how much it intended to raise or what it would use the funds for.
A total of 18 million fully-paid ordinary shares will now be issued to sophisticated and institutional investors at 35 cents.
This price represents a 14.6 per cent to Lefroy’s closing price of 41 cents on November 5 and an 11.4 per cent discount to the five-day volume-weighted average price.
Subject to shareholder approval, Lefroy directors will participate in the placement for a total of $300,000.
Shares are expected to settle on or around November 16 with quotation expected to occur on November 17.
Lefroy will use the money to speed-up exploration at its Eastern Lefroy gold project with a priority focus at the Burns prospect.
Drilling will also focus on the Coogee South, Hang Glider Hill and Havelock prospects.
Chairman Gordon Galt commented on the placement and what the money will be used for.
“We are now funded to undertake extensive exploration activities in the Eastern Lefroy gold project and in particular around the Burns Project,” Mr Galt said.
“Together with the committed exploration program in the western portion of the Lefroy gold project through our joint venture with Gold Fields, we anticipate significant ongoing news flow on the company’s projects.”
Lefroy has ended the day in the grey with shares trading at 41 cents in a $49.29 million market cap.