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- Saturn Metals (STN) receives firm commitments to undertake an $8 million share placement
- More than 16.6 million new fully-paid ordinary shares will now be issued to institutional and professional investors at 48 cents
- Saturn will use the money to accelerate resource growth at the Apollo Hill Gold Project with a resource upgrade targeted for the March quarter
- The money will also go towards the West Wyalong gold venture in New South Wales
- Saturn ends the day 3.57 per cent in the red with shares trading at 54 cents
Saturn Metals (STN) has received firm commitments to undertake an $8 million share placement.
The company entered a trading halt on November 23 but did not disclose how much it intended to raise or what it would use the funds for.
A total of 16,666,667 new fully-paid ordinary shares will now be issued to institutional and professional investors at 48 cents.
This price represents a 14.3 per cent discount to Saturn’s last closing price of 56 cents on November 24 and a 2.3 per cent discount to the 20-day volume-weighted average price.
Saturn’s largest shareholders, Dundee Corporation, subscribed for 2,833,333 shares to maintain their position as Saturn’s largest shareholder.
Shares are expected to settle on December 2 and be issued on December 3.
Saturn will use the money to accelerate resource growth at the Apollo Hill Gold Project with a resource upgrade targeted for the March quarter.
The money will also go towards the West Wyalong gold venture in New South Wales.
Managing Director Ian Bamborough commented on the placement.
“Drilling this year has seen multiple strong intersections extending beyond the previous resource boundary. Higher grades within a lengthening mineralised corridor show the potential for next-level discovery and a much bigger opportunity,” Mr Bamborough said.
“In addition, this raising enables the company to fund other exciting activities in our exploration portfolio and step up our production oriented studies.”
Saturn has ended the day 3.57 per cent in the red with shares trading at 54 cents in a $61.06 million market cap.
