Join our daily newsletter At The Bell to receive exclusive market insights
- Astro Resources (ARO) has successfully raised $2.99 million through a capital raise with sophisticated investors
- Through two tranches, the company will issue 748.5 million shares at 0.4 cents each, along with free attaching options
- Thus far, Astro Resources has received $659,476 in funds and binding applications for the remaining balance
- Proceeds will be used to fund further development of the company’s three projects in Western Australia and the U.S.
- Astro Resources closed 25 per cent higher, to trade at 0.5 cents per share
Astro Resources (ARO) has successfully raised $2.99 million through a capital raise with sophisticated investors.
The company is conducting the capital raise in two tranches, through which it will issue a total of 748.5 million shares at 0.4 cents each.
Through the first tranche, Astro Resources is issuing 498.9 million shares to raise $1.99 million. The company has already received $659,476 in funds, with the remaining balance subject to binding applications.
Through the second tranche, Astro Resources will issue 249.6 million shares to raise $998,300 in proceeds. All shares issued through the two tranches will be accompanied by one free-attaching option each, exercisable for one cent by April 21, 2022.
Proceeds from the capital raise will be used to fund further development of Astro Resources’ three projects in Western Australia and the United States. The company intends to spend approximately $1.92 million on the Needles Project in Nevada, USA, $1.55 million on the Governor Broome Project, and $1.015 million on the Lower Smoke Creek Project.
Since this will use up the entire capital raising, funding the additional $485,000 will come from the company’s existing cash reserves.
Astro Resources’ Chairman, Jacob Khouri, commented on the company’s successful capital raise.
“We are delighted with the outcome of this capital raising led by Melbourne Capital, which demonstrates the ongoing support of key shareholders and sophisticated investors of Astro and its exploration and development strategy across the three principal projects,” he said.
“The Board is particularly excited by the fact that funding is in place to commence the execution of the Needles Gold Project drilling programs, progressing to a prefeasibility study for the Governor Broome HMS Project, in addition to now having the capability to undertake a work at our diamond project in WA,” he added.
Astro Resources closed 25 per cent higher, to trade at 0.5 cents per share at 4:10 pm AEDT.
