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- Mineral resource company Astro Resources (ARO) has locked up its shares ahead of a capital raising announcement
- The stock freeze comes less than a fortnight after Astro announced its latest funding foray, when the company announced it was set to bank $2.75 million
- While details of the announcement are yet to be released to the market, ARO shares will stay locked up until Wednesday, September 9
- Astro’s $2.75 million capital raise took place in two trances — the first part brought in $668,000 following the issue of nearly 191 million shares at 0.35 cents a pop
- Astro also told the market it would seek shareholder approval at a general meeting to issue an extra 534.7 million shares at the same price, raising a further $2.08 million
- As a result, the pending announcement could be related to the results of that meeting and reveal whether or not the company received approval
- Shares in the stock last traded for 0.6 cents on Friday, September 4
Mineral resource company Astro Resources (ARO) has locked up its shares ahead of a capital raising announcement.
The stock freeze comes less than a fortnight after Astro announced its latest funding foray, when the company announced it was set to bank $2.75 million.
While details of the announcement are yet to be released to the market, ARO shares will stay locked up until Wednesday, September 9.
Astro last entered a trading halt two weeks ago, preparing the market for its latest capital raise. Two days later, on August 26, the company announced its $2.75 million fund raise.
That capital raise was split into two tranches — the first part brought in $668,000 following the issue of nearly 191 million shares at 0.35 cents a pop.
Astro also told the market it would seek shareholder approval at a general meeting to issue an extra 534.7 million shares at the same price, raising a further $2.08 million.
As a result, the pending announcement could be related to the results of that meeting and reveal whether the company received approval to place those tranche two shares.
Even before the raise was announced, Astro provided a detailed breakdown of where future funding would go in an investor presentation. The company’s short to medium-term funding goals include developing assets in its project portfolio and obtaining working capital.
Almost half the funding, if given the green light by shareholders, will go towards Astro’s Nevada Gold Project, while more than half a million will fund development at the company’s East Kimberly Diamond Projects.
On August 26, Astro also revealed it would seek shareholder approval to issue roughly 75.4 million shares at the same price as the raise to Gun Capital Management (GCM).
If approved, the issue will reduce GCM’s outstanding loan facility with Astro from $2.97 million to $2.7 million, capitalising around $264,000.
Shares in the junior materials stock last traded for 0.6 cents on Friday, September 4.
