- Navarre Minerals (NML) closes its share purchase plan (SPP) which is oversubscribed by $2.9 million
- Under the SPP, eligible shareholders were entitled to subscribe for up to $30,000 of new fully paid ordinary shares in the company at an issue price of 10 cents per share, resulting in $4.9 million in subscriptions
- Navarre has elected to increase the size of the SPP to $4.9 million, with shares to be issued on June 29
- The funds raised from the SPP, along with a $10 million Placement, will go towards its maiden mineral resource at the Stawell Corridor, as well the large scale, high-potential Morning Bill prospect at Glenlyle
- Navarre Minerals is trading in the grey at 10 cents at 1:25 pm AEST
Navarre Minerals (NML) has closed its share purchase plan (SPP) which is oversubscribed by $2.9 million.
The company targeted $2 million but received in excess of $4.9 million. Under the SPP, each eligible shareholder was entitled to subscribe for up to $30,000 of new fully paid ordinary shares in the company at an issue price of 10 cents per share.
The SPP forms part of the capital raising, which also comprised a share placement to institutional and sophisticated investors raising $10 million.
The company says funds raised from the SPP and placement will go towards its maiden mineral resource at the Stawell Corridor, as well as a mineral resource at St Arnaud and advancing the large scale, high-potential Morning Bill prospect at Glenlyle.
In recognition of the strong show of support, the Navarre board of directors will accept oversubscriptions to allow all eligible shareholders who submitted valid applications to participate in the offer, by increasing the size of the SPP to $4.9 million, issuing 49 million SPP shares.
“To exceed our SPP target is a very strong signal that our shareholders have confidence in our business strategy and performance,” Navarre Managing Director Ian Holland said.
“The SPP, along with the placement, strengthens our balance sheet significantly to allow us to execute our plans and deliver on our strategy of becoming a gold producing business.”
The shares will be issued on 29 June, with the SPP shares ranking equally with existing shares in the company.
Navarre Minerals was trading in the grey at 10 cents at 1:25 pm AEST.