- Mineral exploration company Alloy Resources (AYR) has received firm commitments from investors to raise approximately $600,000 through a share placement
- The company will place over 19 million of its ordinary fully paid shares at three cents each
- Alloy Resources also intends to raise up to $1.4 million through a share purchase plan for existing company shareholders
- The company will use the placement and purchase plan’s funds to fast-track drill-testing at its Doolgunna Project
- Alloy Resources shares have spiked 2.86 per cent into the green today, trading for 3.6 cents per share
Mineral exploration company Alloy Resources (AYR) has received firm commitments from investors to raise approximately $600,000 through a share placement.
The company will place 19,716,934 of its ordinary fully paid shares at three cents each, raising just under $600,000 before costs. Alloy Resources will complete the placement using two separate placement capacities under ASX listing rules.
ASX Listing Rule 7.1 will allow the company to use 15 per cent of its placement capacity, representing 4,391,424 shares. ASX Listing Rule 7.1A will allow the company to use an additional 10 per cent placement capacity, representing 15,325,510 shares.
In addition to the share placement, the company will also conduct a share purchase plan for existing Alloy shareholders. The share purchase plan’s record date was 5:00 pm AWST on July 23, 2020. The plan will be open to eligible shareholders who have registered addresses in Australia or New Zealand.
Shareholders will have the opportunity to subscribe for more Alloy shares at three cents each, the same price offered through the share placement. Under the share purchase plan, the company will raise a maximum of $1.4 million.
Alloy Resources will use funds from the share placement and purchase plan for a number of exploration activities at its various projects. These include ongoing exploration commitments at the company’s Horse Well, Morgan Range, and Bryah Basin Projects.
In particular, Alloy Resources will use funds to fast-track drill-testing of the 2.4-kilometre Degrussa style conductor and exploration at the Doolgunna Project. Some proceeds may also go towards general working capital.
Alloy Resources shares have spiked 2.86 per cent into the green today, trading for 3.6 cents per share at 10:33 am AEST.