- Nexus Minerals (NXM) launches a $19 million placement to fund exploration at its Wallbrook gold project in WA
- The company will issue 41.3 million shares to investors at 46 cents which marks an eight per cent to the last traded price of 50 cents
- Specifically, the money is being used for drilling at the Crusader-Templar and Solomon prospects, as well as for other regional activities with the Wallbrook project
- NXM’s shares are up 20 per cent on the back of this news to trade at 60 cents
Nexus Minerals (NXM) has come out of a trading halt with shares trading in the green as it announces a $19 million capital raise.
The company went into a trading halt on November 11 when it flagged its intention to raise some fresh capital and has now received commitments from professional, sophisticated and institutional investors to launch a placement.
Around 41.3 million fully-paid ordinary shares will be issued at 46 cents each. The issue price marks a 3.1 per cent discount to the five-day volume-weighted average price and an eight per cent discount to the last traded price of 50 cents on November 10.
The money will go towards exploration activities at the Wallbrook gold project which covers a 250-square kilometre area in Western Australia’s Eastern Goldfields region.
Specifically, the funds will support reverse circulation (RC) and diamond drilling at the Crusader-Templar and Solomon prospects, as well as other regional activities within the project.
Managing Director Andy Tudor commented on the support received for the placement.
“To have achieved such a strong level of institutional and sophisticated investor support for the placement was very encouraging and a strong endorsement of the company’s endeavours.”
The placement is expected to settle on November 22.
NXM’s shares were up 20 per cent to trade at 60 cents at 1:30 pm AEDT.