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- Strategic Energy Resources (SER) has entered a trading halt ahead of a capital raise
- The company quickly revealed it plans to raise $880,000 through a placement to new and existing sophisticated and institutional shareholders
- It isn’t yet clear where the funding will go towards but Strategic Energy Resources is about to begin drilling in the Northern Territory
- Further details will be released when SER comes out of the trading halt on Wednesday, September 8
- Company shares last traded at 5 cents on September 3
Strategic Energy Resources (SER) has entered a trading halt ahead of a capital raise.
In the trading halt announcement, the company hadn’t given any details on the capital raise. Soon after however, some information on the raise had been revealed.
Strategic Energy Resources is planning to raise $880,000 through a placement to new and existing sophisticated and institutional shareholders.
Each share will be issued at 4.4 cents each and the company is able to accept oversubscriptions.
The company appointed Fresh Equities to coordinate the bookbuild and its clients have submitted a cornerstone bid. SER’s directors and major shareholders have also expressed their interest to participate in the placement.
SER didn’t disclose what the funds will be used for but in an investor presentation released at the end of last month, the ASX-lister detailed some exploration plans.
According to the company, a drill rig is scheduled to arrive at the Cottage prospect this month to drill two 650-metre-deep holes which are planned to test different parts of an iron oxide copper-gold (IOCG) target.
After this, the rig will mobilise to the Kalarka prospect to drill another two holes. Whether the upcoming capital raise will support these programs or additional ones isn’t yet clear.
SER expects to come out of the trading halt by Wednesday, September 8, at the latest.
Company shares last traded at 5 cents on September 3.
