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Rafaella Resources (ASX:RFR) raises $2m in ‘oversubscribed’ placement

ASX News, Mining
ASX:RFR
16 February 2022 17:30 (AEST)

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Rafaella Resources (RFR) has raised $2 million in an “oversubscribed” share placement to help fund work on its Santa Comba and San Finx projects in Spain.

The capital raised came from the issue of 33.3 million new Rafaella shares to sophisticated investors at a price of six cents per share, representing a two per cent premium to its last trading price of 5.9 cents on February 10 and a 12 per cent discount to the five-day volume-weighted average price.

Investors will also receive one free attaching option exercisable at 12 cents for every two shares taken up under the placement, with an expiry date of April 13, 2024.

Rafaella said it would use the money to advance the development of the Santa Comba and San Finx projects, undertake due diligence for its Portuguese acquisitions and advance funding options for the Midrim and Laforce exploration projects in Canada.

“Rafaella has put together an attractive strategic portfolio of mining projects capable of supplying up to a third of Europe’s tungsten demand,” Managing Director Steven Turner said.

“The Canadian nickel-copper-PGE projects remain very exciting, and the company is seeking a funding solution for the planned drilling campaign that maximises shareholder returns whilst minimising dilution.”

RFR shares finished the day’s trading session steady at 5.9 cents.

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