Join our daily newsletter At The Bell to receive exclusive market insights
- Silica sands explorer Perpetual Resources (PEC) has completed a heavily oversubscribed $2 million placement as sand prices rise off the back of worldwide shortages
- The fresh funding will allow the company to advance its pre-feasibility study at the Beharra Silica Sands project and fast-track its planned definitive feasibility study
- Ultimately, this will help the company capitalise on the strong demand for silica sands in the Asia Pacific and take advantage of rising prices
- Under the placement, around 50 million shares will be issued at four cents
- Directors of the company have subscribed for a combined $150,000, however, this is subject to shareholder approval at an upcoming annual general meeting
- Shares in Perpetual Resources closed 14.3 per cent higher, worth 4.8 cents
Silica sands explorer Perpetual Resources (PEC) has completed a heavily oversubscribed $2 million placement as sand prices rise off the back of worldwide shortages.
Perpetual, which is developing the Beharra Sands Project near Geraldton in Western Australia, will use funds from the placement will be used to advance its pre-feasibility study at the site and fast-track its planned definitive feasibility study.
Ultimately, further work at Beharra will help the company capitalise on the strong demand for silica sands in the Asia Pacific and take advantage of rising prices.
Under the placement, about 50 million shares will be issued at four cents.
Company directors have subscribed for a combined $150,000, however, this is subject to shareholder approval at the company’s upcoming annual general meeting (AGM).
Perpetual Resources Chairman, Julian Babarczy, said the company remained focussed on advancing the Beharra project.
“This additional capital will allow Perpetual to fast track a number of project-related studies at Beharra and will see us rapidly advance to a decision to fund,” he said.
“We remain highly focussed on delivering the Beharra project in a manner that is highly accretive to shareholder value and this raising provides the financial support for this to occur,” Julian concluded.
Shares in Perpetual Resources closed 14.3 per cent higher, worth 4.8 cents.
