- 3D Resources' (DDD) subsidiary, Cosmo Gold, has completed a $600,000 seed capital raising ahead of its proposed IPO
- Cosmo is a WA-based explorer which owns the Cosmo Newbery Gold Project in WA
- Six million Cosmo shares were issued at 10 cents each, as well as six million options exercisable at 25 cents each, which expire on February 29, 2024
- The subsidiary will use most of the money raised to cover the first tranche payment of $500,000 to 3D as part of the IPO
- A further $250,000 will be paid once the IPO has been completed and it is so far on track to open early next month
- 3D is trading in the grey at 0.5 cents
3D Resources' (DDD) subsidiary, Cosmo Gold, has completed a $600,000 seed capital raising ahead of its proposed IPO.
In December last year, 3D received shareholder approval to spin-out its wholly-owned subsidiary, Cosmo Gold, and to raise $600,000 in seed capital at 10 cents per share.
The capital raise issued six million Cosmo shares at 10 cents each as well as six million options exercisable at 25 cents each which expire on February 29, 2024.
The issue of these shares, along with 80,000 shares issued to the broker, increases Cosmo's total shares on issue to 21,080,000 of which 3D retains 15 million (or 71.16 per cent).
3D has proposed to distribute the 15 million shares in specie to its shareholders. It has also proposed to issue another 25 million shares at 20 cents to raise $5 million along with oversubscriptions as part of Cosmo's IPO.
Cosmo will use the money to cover the capital raising costs and for the first tranche payment of $500,000 to 3D as part of the IPO. A further $250,000 is payable once the IPO has been completed.
The IPO is well-advanced and expected to open in early February.
Importantly, Cosmo Gold owns the Cosmo Newbery Gold Project which is located in the Cosmo Newbery greenstone belt. This belt is one of the few remaining unexplored greenstone belts in WA.
3D is trading in the grey at 0.5 cents at 12:54 pm AEDT.