Join our daily newsletter At The Bell to receive exclusive market insights
- Junior explorer Battery Minerals (BAT) has tapped investors for $5.5 million to kick off work at a new exploration licence in Victoria
- The company snapped up the Australian copper-gold project, which is near Stavely Minerals’ (SVY) Thursday’s Gossan project, in October
- Now, Battery has raised some funds to get exploration work at its new tenement underway
- The funds were raised by placing around 250 million new shares to professional and institutional investors at 2.2 cents per share
- Battery is also launching a share purchase plan to raise another $1 million at the same price
- Shares in the company broke out of a trading halt today and slumped towards the placement price, closing almost 11 per cent lower at 2.5 cents each
Battery Minerals (BAT) has successfully tapped investors for $5.5 million to kick off work at a new exploration licence in Victoria.
The junior explorer raised the funds by placing roughly 250 million new shares to professional and institutional investors at 2.2 cents per share — a neat discount of around 27 per cent to the company last closing price of 3 cents.
Now, Battery Minerals will launch a share purchase plan to raise another $1 million at the same price, giving mum and dad investors the chance to top up at the same discount.
The share purchase plan will close on December 14, with new shares bought under the plan to be issued on December 22.
Copper-gold exploration
Battery announced in mid-October it was set to go ahead with its Gippsland Prospecting purchase, with a Victorian copper-gold project at the forefront of the deal.
Battery coughed up $500,000 and 439 million BAT shares for full control of Gippsland and, subsequently, the project.
Today, Battery said it will use the funds from the capital raise to explore its new tenement.
The project is in the Stavely Volcanics region of Victoria and lies next to Stavely Minerals’ (SVY) Thursday’s Gossan project. Stavely Minerals has a $236 million market cap, with shares currently trading for around 90 cents a pop.
Battery Managing Director David Flanagan said today’s fundraising marks an important step in getting the planned exploration program at the new project underway.
“We appreciate the tremendous support shown by our shareholders and new investors,” David said.
“We look forward to rewarding them with exploration success and generating shareholder value,” he said.
On top of the new Victorian project, Battery is focussed on two core graphite projects in Mozambique.
Shares in Battery Minerals broke out of a trading halt this morning and slumped towards the share placement price. At 3:16 pm AEDT, BAT shares are down 10.71 per cent and worth 2.5 cents each.
