- Odyssey Gold (ODY) is set to raise up to $15 million through a placement and share purchase plan
- Under the placement, the company will issue 79.8 million shares at 12.5 cents per share to institutional and sophisticated investors to raise $10 million
- The issue price represents a 7 per cent discount to the last closing price of 13.5 cents on May 26
- The other $5 million will be raised through a share purchase plan to give eligible shareholders the chance to subscribe for up to $30,000 worth of shares
- The money will be used for drilling and exploration at the Tuckanarra and Stakewell gold projects in WA
- Odyssey Gold is up 7.41 per cent and shares are trading at 14.5 cents
Odyssey Gold (ODY) is set to raise up to $15 million through a placement and share purchase plan.
The company received commitments from institutional and sophisticated investors to subscribe for 79.8 million new ordinary shares at a price of 12.5 cents per share to raise $10 million.
The issue price represents a 7 per cent discount to the last closing price of 13.5 cents on May 26.
In addition, Odyssey will launch a share purchase plan to raise another $5 million. Eligible shareholders will be given the opportunity to subscribe for up to $30,000 worth of new shares at the same issue price as the placement.
The company has the right to accept oversubscriptions or to reject and scale back applications under the share purchase plan.
Odyssey plans to use $15 million to fund exploration and development of its Tuckanarra and Stakewell gold projects in WA. Specifically, the miner will conduct further exploration drilling, resource development drilling, as well as technical and metallurgical studies.
“We are pleased with the strong support received for this placement from existing and new investors. It reflects the exciting exploration potential of our two outstanding gold projects in the Murchison Goldfields,” Executive Director Matt Syme said.
“We also appreciate the enthusiastic support of our existing shareholders and
welcome them to participate through the SPP,” he added.
The share purchase plan will be open from June 3 until June 24.
Odyssey Gold is up 7.41 per cent and shares are trading at 14.5 cents at 11:39 am AEST.