- Nex Metals Exploration (NME) has raised $2.44 million in capital through a placement
- More than 44.4 million shares will be issued at a price of 5.5 cents per share
- That figure represents a big discount from its closing share price on June 30, 2020, of 12.5 cents per share.
- Investors appear to have reacted poorly to the placement, possibly due to the discount
- Nex Metals’ shares closed down 16 per cent, at 10.5 cents per share
Nex Metals Exploration (NME) has announced it has raised $2.44 million through a placement, in a move which may have angered some shareholders.
The shares on offer via the placement were sold at 5.5 cents each, which represents a big seven cent discount from its closing share price on June 30, 2020, of 12.5 cents per share.
The move may have annoyed some shareholders, with the company’s share price dropping 16 per cent today – after the trading halt relating to the placement announcement was lifted.
It was also the second trading halt entered into by the company in a week, with the other trading halt announcement relating to assay results for the Kookynie Gold Project.
Under the terms of the placement, 44,454,538 shares will be issued at the 5.5 cents per share discounted price.
Meanwhile, the $2.44 million raised via the placement will be spent on the Kookynie project and processing the Cosmopolitan tailings.
Both the Kookynie gold project and the Cosmopolitan gold mine are farm-in projects held with fellow ASX-listed exploration company Metalicity (MCT).
The $2.44 million raised through the placement should help them do so.
Nex Metals’ shares closed 16 per cent in the red, and at 10.5 cents each.