- Strandline Resources (STA) has completed a placement and institutional entitlement offer and raised $74.3 million
- This forms part of a $122 million equity raise to develop the company’s Coburn Project in Western Australia
- Under the placement, $39.2 million was raised through the issue of 191.1 million shares at 20.5 cents
- This price was a 20.9 per cent discount to the five-day volume-weighted average price
- For the institutional entitlement offer, roughly 171.3 million new shares were issued to raise $35.1 million
- The remaining $47.3 million will be raised via a retail entitlement offer which is set to open on April 7
- Major shareholder Tembo Capital has committed to subscribe for 70 million shares, worth $14.4 million
- Strandline is down 2.78 per cent and shares are trading at 21 cents
Strandline Resources (STA) has completed a placement and institutional entitlement offer and raised $74.3 million.
This forms part of a $122 million equity raise to develop the company’s Coburn Project in Western Australia.
Placement
Under the placement, roughly 191.1 million shares were issued to institutional investors at 20.5 cents to raise $39.2 million.
This price represents an 8.9 per cent discount to Strandline’s last closing price of 22.5 cents and a 20.9 per cent discount to the five-day volume-weighted average price.
Institutional entitlement offer
For the institutional entitlement offer, roughly 171.3 million new shares were issued to raise $35.1 million.
Additionally, shareholders received one new share for every 1.3 held.
Shares under both the placement and institutional entitlement offer are expected to settle on April 9 and begin trading on the ASX on April 12.
Retail entitlement offer
The remaining $47.3 million will be raised via a retail entitlement offer which is set to open on April 7 and close on April 20.
Like the institutional offer, eligible shareholders will be able to receive one new share for every 1.3 held.
Major shareholder, Tembo Capital, has committed to subscribe for 70 million shares, worth $14.4 million.
Shares will settle and be allocated on April 27 and begin trading on the ASX on April 28.
“The company is set to make a final investment decision once all proceeds from the equity raise are received next month and plan to commence full-scale construction immediately after that, putting Coburn on track for production in the second half of 2022,” Managing Director Luke Graham stated.
Strandline is down 2.78 per cent and shares are trading at 21 cents at 3:11 pm AEDT.