- Anglo Australian Resources (AAR) is looking to raise up to $14 million through a share placement and share purchase plan
- Sophisticated and professional investors have already shown support for the placement which will raise $11 million
- Under the placement, a total of 64.7 million shares will be issued at 17 cents
- The share purchase plan will raise up to $3 million and will be open to all eligible shareholders from September 25 until October 14
- The funds will go towards significant drilling and exploration programs at the Mandilla Gold Project in WA
- Company shares have dropped 2.70 per cent and are trading for 18 cents
Anglo Australian Resources (AAR) has received firm commitments to raise $11 million through a share placement.
Under the single-tranche placement, approximately 64.7 million shares will be issued at 17 cents each to sophisticated and professional investors.
The issue price represents an eight per cent discount to the last traded price of 18.5 cents and a 12 per cent discount to the five-day volume-weighted average price (VWAP) of 19.7 cents on Wednesday, September 16.
Additionally, AAR is undertaking a non-underwritten share purchase plan (SPP) to raise up to $3 million. The SPP will be open to all eligible shareholders and will be issued at the same price as the placement.
"We are delighted by the strong support for the placement from new and existing investors, including a number of high-quality Australian and international institutions that have joined our register, and I would like to sincerely thank everyone who participated in the raising for their support," Managing Director Marc Ducler said.
Along with the company's existing cash reserves, the money from the placement and SPP will be used to advance exploration and resource definition drilling and technical and feasibility studies at its wholly-owned Mandilla Gold Project. Mandilla is located around 60 kilometres south of Kalgoorlie in Western Australia.
AAR is currently completing its 10,600-metre reverse circulation (RC) drilling program at Mandilla which began on September 4.
An additional 60 kilometres of RC drilling and 10 kilometres of diamond drilling will be undertaken over different prospects at Mandilla.
In terms of other exploration work, AAR will advance technical studies for the gold project. This will include environmental, geotechnical, metallurgical, mining and infrastructure work and feasibility studies.
Furthermore, the miner is planning 3000 metres of RC drilling at the Feysville Gold Project to confirm previous interpretations.
The new shares under the placement are expected to settle on September 24 and will be allocated on the following day. The SPP will open on September 25 and will close on October 14.
Company shares have dropped 2.70 per cent and are trading for 18 cents just before market close.