Westar Resources (ASX:WSR) to raise $850k for Gidgee

• Westar Resources (WSR) receives binding commitments for a single-phase placement to raise $850,000
• More than seven million fully-paid ordinary shares will now be issued to sophisticated investors at 12 cents
• Westar will use the money to fund exploration at its Gidgee North base metals project following the successful geophysical and geochemical surveys
• Shares are expected to settle on or around November 24
• Westar ends the day 3.57 per cent in the green with shares trading at 14.5 cents

Westar Resources (WSR) has received binding commitments for a single-phase placement to raise $850,000.

The company entered a trading halt on November 9 but did not disclose how much it intended to raise or how it would spend the funds.

A total of 7,060,621 fully-paid ordinary shares will now be issued to sophisticated investors at 12 cents.

This price represents a 14.3 per cent discount to Westar’s close on November 8 of 14 cents and a 20.2 per cent discount to the 10-day volume-weighted average price of 15.4 cents.

Westar will use the money to fund exploration at its Gidgee North Base Metals Project following the successful geophysical and geochemical surveys.

Shares are expected to settle on or around November 24.

Managing Director Karl Jupp commented on the placement.

“The placement positions the company with a strong cash balance to progress its exploration program at the recently consolidated Gidgee North Project that hosts both gold and VMC base-metal targets with historic copper and zinc drill intercepts and greenfields discovery potential.”

Westar has ended the day 3.57 per cent in the green with shares trading at 14.5 cents in a $7.38 million market cap.