- Sipa Resources (SRI) receives binding commitments to undertake a $1.5 million share placement
- Roughly 24.5 million fully paid ordinary shares will now be issued to sophisticated and professional investors at 5.9 cents each
- Sipa will use the funds to undertake a number of drilling programs at the Warralong, Wolfe Basin, Barbwire Terrace and Skeleton Rocks projects
- Shares in Sipa closed up 1.61 per cent at 6.3 cents
Sipa Resources (SRI) has received binding commitments to undertake a $1.5 million share placement.
The company entered a trading halt only yesterday but did not disclose how much it intended to raise or what it would use the funds for once received.
Roughly 24.5 million fully paid ordinary shares will now be issued to sophisticated and professional investors at 5.9 cents each.
This price represents a five per cent discount to the 15-day volume-weighted average price.
Shares are expected to settle on September 22 and be issued shortly after.
Sipa will use the funds to undertake a number of drilling programs at the Warralong, Wolfe Basin, Barbwire Terrace and Skeleton Rocks projects.
Managing Director Pip Darvall commented on the placement.
“This capital raise at a nominal discount will support Sipa’s ongoing active exploration programs and in particular a number of drilling programs across our Western Australian portfolio of gold and base metal projects,” Mr Darvall said.
“The solid support from the specialist resources investment fund represents a positive endorsement of the approach we have been taking.”
Shares in Sipa closed up 1.61 per cent at 6.3 cents.