- Lefroy Exploration (LEX) has received firm commitments to raise roughly $4.5 million via a share placement
- This forms part of the company’s total equity raising of $5.5 million with the other $1 million to be raised via a share purchase plan (SPP)
- To raise the $4.5 million, more than 18 million shares will be issued to institutional and sophisticated investors at 24 cents a pop
- Additionally, Lefroy’s largest shareholder, St Ives Gold Mining Company, took part in the placement by taking a pro-rata allocation totalling 3.4 million shares
- Under the share purchase plan, eligible shareholders may subscribe for up to $30,000 worth of shares without incurring any costs
- The total amount will be capped at $1 million and Lefroy will scale-back applications if it exceeds that amount
- Lefroy will use the funds to accelerate exploration at its Eastern Lefroy Gold Project in WA and for general working capital purposes
- Company shares are down 2.04 per cent at market close, trading for 24 cents
Lefroy Exploration (LEX) has received firm commitments to raise roughly $4.5 million via a share placement.
This forms part of the company’s total equity raising of $5.5 million with the other $1 million to be raised via a share purchase plan (SPP).
Placement
All up, 18,750,005 fully-paid ordinary shares will be issued to institutional and sophisticated investors at 24 cents a pop.
This is a 2 per cent discount to the company’s closing price on October 19 of 24.5 cents and a 6.4 per cent discount to the 15-day volume weighted average price.
Additionally, Lefroy’s largest shareholder, St Ives Gold Mining Company, took part in the placement by taking a pro-rata allocation totalling 3.4 million shares.
This ensures the company kept its 18.13 per cent holding in Lefroy.
Further, Lefroy has advised that a Director has committed to take part in the placement, subject to shareholder approval.
Shares are expected to settle on October 29 and begin trading on the ASX on October 30.
Share purchase plan
Under the share purchase plan, eligible shareholders will be able to subscribe for up to $30,000 worth of shares without incurring any brokerage or transaction costs.
The total amount will be capped at $1 million and Lefroy will scale-back applications if that amount is exceeded.
The plan will open on October 29, close on November 19, and shares will be issued on November 25.
Lefroy will use the funds to accelerate exploration at its Eastern Lefroy Gold Project in WA and for general working capital purposes.
“We are in a strong financial position to accelerate exploration activities in the Eastern Lefroy Gold Project,” Chairman Gordon Galt said.
“These programs, together with the continued exploration in the western portion of the Lefroy Gold Project through our joint venture with Gold Fields, means there will be substantial drilling activity and news flow on the company’s projects going forward,” he added.
Lefroy has ended the day 2.04 per cent in the red with shares trading for 24 cents each in a $24.61 million market cap.