PERTH (miningweekly.com) – ASX-listed Argonaut Resources has raised A$2.7-million in a private placement, with the company hoping for a further A$1.9-million through a share purchase plan (SPP).
Argonaut placed 491.6-million shares at a price of 0.55c each to professional sophisticated and institutional investors under the company’s existing placement capacity, to raise the initial A$2.7-million.
The issue price represented a 21% discount to the company’s last closing price and a 24% discount to its 15-day volume weighted average share price.
Under the SPP, shareholders would be allowed to apply for up to A$30 000 worth of new shares in the company, also priced at 0.55c each.
The SPP will open on September 25 and will close on October 16.
Argonaut has told shareholders that the funds would be used primarily to drill test copper targets at the Murdie project, in South Australia.