- Junior explorer Mindax (MDX) is tapping investors for $2.08 million while its shares remain suspended
- The company’s shares haven’t traded since late-June 2019 due to lack of compliance with certain ASX listing rules
- Nevertheless, the company has launched a two-for-five entitlement offer today, with new shares worth 0.5 cents each
- The funds will be used to progress Mindax’s Mt Forrest Iron Project and re-assess its Meekathara Gold Project
- Mindax shares last traded almost 12 months ago for 0.3 cents each
Junior explorer Mindax (MDX) is tapping investors for $2.08 million through an entitlement offer while its shares remain suspended.
The company’s shares were suspended in late-June 2019 due to a lack of compliance with certain ASX listing rules. Shares are yet to be unlocked back for trade, but the company is trekking on with business as usual.
The cash from today’s capital raise will be used to progress Mindax’s Mt Forrest Iron Project and re-assess its Meekathara Gold Project, as well as fund general working capital.
Unde the capital raising plan, shareholders can subscribe for two new shares for every five currently held at 0.5 cents each. If the planned $2.08 million is raised, this means roughly 416 million new shares will be issued as part of today’s offer.
Since October 29, 2019, Mindax has issued over 90 million shares at half a cent each to keep cashflow steady.
Both the Mt Forrest and Meekathara projects are located in Western Australia.
The company broke down how it plans to use the entitlement offer funds, with just over 60 per cent planned for work at the Mt Forrest project. Just 4.8 per cent, or $100,000, will go towards Meekatharra, and the rest will be used for general corporate and admin costs.
The entitlement offer will take the company’s total share issue up to roughly 1.46 billion shares.
Shares in Mindax last closed worth 0.3 cents each, meaning today’s capital raise is technically a 60 per cent premium on the company’s last trading price. Given the almost-year-long suspension, though, it’s tough to determine the company’s true value.