- S2 Resources (S2R) raises $6.4 million through a share placement to fund exploration at its gold and nickel exploration projects across Australia
- The company says the placement was “very strongly” supported by both existing and new institutional and sophisticated investors
- S2R will issue around 53.17 million new shares at 12 cents per share to raise the funds
- The company says it is well-funded following the placement, with around $7.5 million in cash plus its shareholding in Todd River Resources (TRT)
- Shares in S2R are trading grey at 14 cents at 11:35 am AEDT
S2 Resources (S2R) has raised $6.4 million through a share placement to fund exploration at its Polar Bear, Jillewarra, Koonenberry and Greater Fosterville projects across Australia.
The company offered around 53.17 million new shares at 12 cents per share to raise the funds.
It said the proceeds would be used for gold and nickel exploration at its different projects across the nation.
S2 Executive Chairman Mark Bennett said the company received “encouraging” support for the raise.
“To see such strong support from long-term shareholders together with additional demand from new institutional and sophisticated investors is very encouraging,” Mr Bennett said.
“It reaffirms the company’s view on the significance of its exploration assets and, in particular, the latent value of the Greater Fosterville exploration licence application which surrounds Agnico Eagle’s world-class Fosterville gold mine.
“Although the demand was such that we could have raised more, we took the conscious decision to not issue more equity than required at this juncture,” he added.
S2’s Polar Bear nickel project and Jillewarra project are located in Western Australia, its Koonenberry lies in New South Wales, and its Greater Fosterville project is in Victoria.
The company expects the placement to be settled on March 3, with shares commencing trade on March 6.
Shares in S2R were trading grey at 14 cents at 11:35 am AEDT.