- Mineral exploration company Carpentaria Resources (CAP) is hoping to generate up to $1.19 million in its latest capital raise
- Scheduled to open later this month, the company will issue up to 34 million shares at 3.5 cents each
- The proceeds will be used as working capital while Carpentaria Resources develops a commercialisation strategy for the Hawsons Iron Project in New South Wales
- The offer will open on October 12 and close on October 23, with shares being issued on October 29, 2020
- Carpentaria Resources closed 16.22 per cent in the green for 4.3 cents per share
Mineral exploration company Carpentaria Resources (CAP) is hoping to generate up to $1.19 million in its latest capital raise.
Through a share purchase plan, the company will issue up to 34 million shares at 3.5 cents per share, without incurring brokerage or any other transaction costs.
The issue price represents a significant discount to the volume-weighted average market price of shares. Based on this price over the last 30 trading days, it is a 28.6 per cent discount.
Existing eligible holders of fully paid ordinary shares in Carpentaria Resources will be able to apply for up to 857,142 each. At 3.5 cents each, this will result in proceeds of up to $30,000 per eligible holder.
Eligible participants in the offer consist of investors who hold one or more shares in the company, with a registered address in Australia or New Zealand as of October 7, 2020. These people must not be acting for the account or benefit of a person in the United States in order to maintain their eligibility.
The proceeds of the plan will be combined with Carpentaria’s existing funds, and used as working capital. This will assist the company over the next 12 months, as it works to develop a commercialisation strategy for the Hawsons Iron Project.
Based on the company’s current timetable, the offer is likely to open in the morning of October 12, 2020. The offer should close at the end of trading on October 23, 2020.
However, if total applications to the SPP exceed the target of $1.19 million, Carpentaria Resources has the right to close the offer early, or scale back applications.
The company plans to announce the allocation and any scale-backs of shares on October 27, with shares being issued on October 29, 2020.
Carpentaria Resources closed 16.22 per cent in the green for 4.3 cents per share.