Join our daily newsletter At The Bell to receive exclusive market insights
- Minerals explorer Blaze International (BLZ) is set to raise around $1.3 million from a placement to strategic investors
- The company is using its full 25 per cent placement capacity to issue 52.5 million shares at 2.5 cents each — a 16.7 per cent discount to the last closing price
- Shareholders may be a little miffed at being unable to get in on the action, and may also wonder who the crucial new “sophisticated and other investors exempt from the disclosure requirements of the Corporations Act” are
- The direction of the funds is also vague — with Blaze saying only that they’ll be used for exploration across its considerable portfolio, as well as for working capital
- Blaze International’s share price dropped 3.3. per cent today after coming out of a trading halt. Shares closed worth 2.9 cents each
Minerals explorer Blaze International (BLZ) is set to raise around $1.3 million from a placement to strategic investors.
The company says the funds will be used to advance exploration across its portfolio and for general working capital.
Full capacity
By bringing new strategic investors onto its register, Blaze is hoping to establish “crucial […] strong support” of the company’s projects.
The company is using its full 25 per cent placement capacity to issue 52.5 million shares at 2.5 cents each — a 16.7 per cent discount to the last closing price.
Shareholders may be a little miffed at being unable to get in on the action, and may also wonder who the crucial new “sophisticated and other investors exempt from the disclosure requirements of the Corporations Act” are.
Money, money, money
The company will raise a little over $1.23 million after the fees paid to lead manager, CPS Managing Fees.
The direction the funds will be heading is also suitably vague.
A million dollars won’t go too far in the “proposed exploration program planned for the company’s existing tenements located in the Kirkalocka, Warriedar and Leonora Greenstone Belt; Cojinup Creek and Jimberlana Nickel Projects; Mt Magnet Gold Project; and [for] general working capital.”
While the above projects do show glimpses of considerable promise, one might wager a clearer direction would be appreciated by shareholders left in the dark on the backroom deals.
Blaze International’s share price dropped 3.3. per cent today after coming out of the trading halt. Shares closed worth 2.9 cents each.
