- Fraser Range Metals (FRN) is looking to raise $3.5 million for its upcoming soil sampling and diamond drilling programs at the Mt Adrah gold project
- The money will be raised through a placement and share purchase plan
- In the placement, approximately 110 million shares will be issued at a price of $0.025 to raise $2.75 million
- The remaining money will be raised via a share purchase plan where eligible shareholders will be able to purchase up to $30,000 worth of shares
- Fraser Range is up 7.14 per cent and shares are trading for three cents each
Fraser Range Metals (FRN) will be undertaking a placement and share purchase plan to raise $3.5 million.
The money raised will be used for Fraser Range’s upcoming soil sampling program and 2000 metre diamond drill at the Mt Adrah gold project.
Fraser Range will also use some money to gain a better understanding of its land position in the Mallina Gold Province in WA.
The remaining money will be used for general working capital requirements.
Fraser Range has received firm commitments for a $2.75 million placement.
Approximately 110 million fully paid shares will be issued at a price of $0.025 per share which represents a 9.3 per cent discount to the five-day volume-weighted average price.
Allocation of shares is expected to be undertaken in two phases with phase one consisting of 79,250,000 shares to be allocated on May 14.
Phase two, which is subject to shareholder approval, will consist of the remaining 30,750,000 shares.
Share purchase plan
The remaining $750,000 will be raised through a share purchase plan.
Eligible shareholders will have the opportunity to apply for up to $30,000 worth of shares without incurring any brokerage, transaction, and commission costs.
Shares under the share purchase plan will be priced the same as the placement.
The share purchase plan is expected to open on May 14, close on June 2. Shares are then expected to be issued on June 10.
“We are extremely pleased with the show of support from professional and sophisticated investors in the placement,” Executive Director Matthew Banks said.
“We now have two projects with potential scale that sit on highly fertile structures and look forward to putting this money to use,” he said.
Fraser Range is up 7.14 per cent and shares are trading for three cents each at 12:14 pm AEST.