PERTH (miningweekly.com) – Copper developer Hillgrove Resources will raise some A$10.9-million in a share placement and entitlement offer, priced at 3.1c each.
The company on Thursday said that it would raise an initial A$8.1-million through the issue of more than 261.2-million shares to institutional and sophisticated investors, in two tranches.
The first placement will consist of more than 76.2-million shares and would be issued under the company’s existing placement capacity. The second tranche of more than 185-million shares would be subject to shareholder approval, with a meeting scheduled on or about February 5.
A further A$2.8-million would be raised through a non underwritten non-renounceable entitlement offer, at a ratio of 1-for-6.5, with some 90.1-million shares to be placed.
The entitlement offer will open on December 30 and will close on February 8.
“At the conclusion of the capital raise, we will be well positioned to complete the drilling and study phase for the Kanmantoo underground project through to final investment decision and continue to investigate the depth extensions of the copper and gold mineralisation, which remains open both along strike and at depth in all lodes,” said Hillgrove MD Lachlan Wallace.
“I am confident that the planned works will create value for Hillgrove through the potential recommencement of copper and gold production at Kanmantoo, which enables us to unlock the value in the region through further advancement of the near mine and regional exploration projects.”