- Junior explorer Argent Minerals (ARD) is getting ready to tap investors for some extra funds this week
- The details of the raise have not yet been revealed, but Argent said in June it would increase its exploration budget for drilling in 2020
- Argent raised $1.3 million through a share placement in May and has $2.26 million worth of options to be converted before the end of October this year
- At the end of June, the company had about $2 million in the bank and quarterly expenses of just over $300,000
- Shares in Argent Minerals last closed for 5.5 cents each on Friday afternoon
Junior explorer Argent Minerals (ARD) is getting ready to tap investors for some extra funds this week.
The company froze its shares this morning ahead of an upcoming capital raise, slated to be launched on Wednesday, August 12. The details of the raise, including how much cash Argent plans to raise and where the funds will be headed, has not yet been revealed.
Nevertheless, in its June 2020 quarterly financial report, the company revealed its plans to significantly increase its exploration budget as it gears up to take on some drilling across its major projects before the end of the year.
Over the June quarter, Argent went cashflow-negative by just over $300,000. With about $2 million in the bank at the end of the quarter, this meant that without raising any capital, the company had enough cash in the bank to survive six more financial quarters at current spending levels.
Moreover, Argent has over 90 million options, issued in October 2019, set to expire on October 29. Priced at 2.5 cents each, the options represent a potential $2.26 million in funding heading Argent's way in late October if they are all converted.
In May, Argent raised $1.3 million through an oversubscribed share placement, with shares priced at 1.2 cents a pop.
As such, given the company's cash position and the fact that its last capital raise was just a few months ago, shareholders might have been taken by surprise with today's announcement.
Still, Argent shares have increased by 175 per cent since the start of June, meaning even a moderate discount on the upcoming capital raise would still bring in more bang for Argent's buck than previous raises.
Shares in Argent Minerals last traded for 5.5 cents each on Friday afternoon. The company has a $41.06 million market cap.