- Sunshine Gold (SHN) secures commitments to undertake a $4.68 million placement
- More than 104 million shares will now be issued to institutional and sophisticated investors at 4.5 cents
- Subject to shareholder approval, Sunshine Directors will subscribe for seven million shares, priced at 4.5 cents, to raise a further $315,000
- Sunshine will use the funds to advance recent exploration success, business development and general working capital
- Shares in Sunshine are down 1.89 per cent on the market and are trading at 5.2 cents at 3:42 pm AEST
Sunshine Gold (SHN) has secured commitments to undertake a $4.68 million placement.
The company entered a trading halt on September 16 but did not disclose how much it intended to raise or what it would use the funds for.
A total of 104,111,112 shares will be issued to institutional and sophisticated investors at 4.5 cents.
This price represents a 10.1 per cent discount to Sunshine’s five-day volume-weighted average price.
Subject to shareholder approval, Sunshine Directors will subscribe for seven million shares, priced at 4.5 cents, to raise a further $315,000.
Sunshine will use the funds to advance recent exploration success, business development and general working capital.
Shaw and Partners will act as sole lead manager and will be paid a six per cent selling fee on the funds received.
Managing Director Damien Keys said the placement comes at an exciting time for the company.
“We have an exciting period ahead. We are expecting to deliver a maiden JORC resource over the high-grade project at Triumph,” Mr Keys said.
“In addition, drilling has commenced at our large scale Titov and Keans copper-molybdenum-gold-silver prospects at Ravenswood West where significant mineralisation was intersected in the 1950s/60s but never followed up.”
Shares in Sunshine were down 1.89 per cent on the market and were trading at 5.2 cents at 3:42 pm AEST.