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- Alta Zinc (AZI) has received binding commitments to raise $3.75 million via a share placement
- All up, 750 million new fully paid ordinary shares will be issued to professional and sophisticated investors at 0.5 cents
- This price represents a 16.7 per cent discount to Alta Zinc’s closing price of 0.6 cents on March 19
- Once received, Alta Zinc will use the money to extend its diamond drilling programs at the Pian Bracca and Ponente zones at the Gorno Zinc Project in Italy
- The shares are expected to settle on March 30 and be allocated on March 31
- Alta Zinc has ended the day with no change and shares trading at 0.6 cents
Alta Zinc (AZI) has received binding commitments to raise $3.75 million via a share placement.
The company entered a trading halt on March 22 but did not disclose how much it intends to raise or what the funds would be used for.
All up, 750 million new fully paid ordinary shares will be issued to professional and sophisticated investors at 0.5 cents.
This price represents a 16.7 per cent discount to Alta Zinc’s closing price of 0.6 cents on March 19 and a 19.4 per cent discount to the 30-day volume-weighted average price.
Subject to shareholder approval, 20 million shares, totalling $100,000, will be issued to Managing Director Geraint Harris.
Once received, Alta Zinc will use the money to extend its diamond drilling programs at the Pian Bracca and Ponente zones at the Gorno Zinc Project in Italy.
The company is aiming to extend the thick high-grade mineralisation at both zones to create new mineral resource estimates.
“The placement allows us to continue to extend our current dual-rig underground drilling program at Gorno, where we have had outstanding success in identifying high-grade mineralisation in the current areas and see similar potential in both extensional and new target areas,” Geraint commented.
“The drilling completed to date and that which is ongoing will be integrated into our upcoming mineral resource update and these funds will allow drilling to continue to further expand the resource base at Gorno and to advance our other exciting regional projects,” he added.
The shares are expected to settle on March 30 and be allocated on March 31.
Alta Zinc has ended the day with no change and shares trading at 0.6 cents in a $21.66 million market cap.
