- AusQuest (AQD) is looking to raise up to $3 million to fund potential acquisitions and exploration in Australia and Peru
- Over 142.8 million shares will be issued at 2.1 cents each, which represents a 16 per cent discount to the last closing price
- The placement comes with one attaching option which is exercisable at 4 cents by March 1, 2023, for every two shares subscribed for
- AusQuest has received strong support including from its largest shareholder who will subscribe for up to $400,000 worth of shares
- The placement will be split into two tranches with the first expected to settle on February 26
- The second tranche is subject to shareholder approval and, if it is approved, tranche two will be settled in April
- Company shares are trading flat at 2.5 cents
AusQuest (AQD) has completed a bookbuild to raise up to $3 million through a placement to sophisticated and professional investors.
All up, 142,857,150 million shares will be issued at 2.1 cents each which represents a 16 per cent discount to the last closing price and a 13.5 per cent discount to the five-day volume-weighted average price.
Investors who participate in the placement will receive one attaching unlisted option which is exercisable at 4 cents on or before March 1, 2023, for every two shares subscribed.
Pleasingly, AusQuest’s largest shareholder, Chrysalis Investments, will subscribe for up to $400,000 (or 19,047,620 shares) in the placement. Further, AusQuest’s Managing Director, Graeme Drew, has committed to subscribe for up to $50,000 (or 2,380,953 shares).
The placement will be split into two tranches, with the first expected to settle on Friday, February 26. The second tranche is subject to shareholder approval which will be held at the end of March. If it gets the tick of approval, tranche two will be settled in April.
AusQuest will use the money from the placement, and its existing cash reserves, to pursue acquisition and exploration opportunities in Australia and Peru that might interest its strategic alliance partner, South32’s (S32) wholly-owned subsidiary. If not, AusQuest will retain a sole interest in whatever asset or opportunity it finds.
“It was extremely pleasing to see the level of support the company received for the placement. This will now allow us to fast-track early-stage exploration programs that we couldn’t do before, with the aim of providing quality drill targets for either our strategic alliance partner or ourselves,” Managing Director Graeme Drew said.
In Australia, the company will increase exploration at the Moora and Morrisey Well projects which are targeting magnetic signatures similar to Chalice Mining’s (CHN) Julimar discovery.
Exploration in Peru will also be increase to advance new copper projects to a stage where they could be of interest to South32.
Company shares are trading flat at 2.5 cents at 2:17 pm AEDT.