- Silver City Minerals (SCI) has entered back-to-back trading halts as it gets ready for a capital raise via a share placement
- The exploration company will remain in a trading halt until the announcement is made, or July 31
- Silver City recently announced it would acquire the Wellington Project in the Lachlan Fold Belt, NSW
- The company had the option of acquiring the project from Syndicate Minerals, as part of a wider deal announced in March
- Shares in Silver City last traded for 1.8 cents per share
Silver City Minerals (SCI) has entered back-to-back trading halts as it gets ready to announce a new capital raise via a share placement.
The exploration company successfully requested two trading halts be implemented by the ASX to give the company enough time to organise the capital raise.
The trading halt will be lifted by July 31, or once the announcement is made public.
It’s likely the capital will go towards the company’s new Wellington Project, a copper-gold package in the Lachlan Fold Belt of NSW.
The company had the option to acquire the project from Syndicate Minerals, as part of a wider deal announced in March this year.
As payment, Silver City has issued 15 million fully paid ordinary shares, at one cent per share, to Syndicate Minerals, with 7.5 million of those shares held in a 12-month escrow.
It’s also issued 7.5 million options, exercisable at a price of two cents per share by October 2022, and agreed to a 1.5 per cent net smelter return royalty.
In the meantime, before today’s back-to-back trading halts, shares in Silver City were trading for 1.8 cents per share on July 24.