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Los Cerros (ASX:LCL) receives firm commitments for a $2.1M placement
  • Exploration and mining company Los Cerros (LCL) has received binding commitments for a $2.1 million placement
  • Under the placement, the company will issue 52.5 million shares at a price of $0.04 per share
  • Los Cerros has also announced a share purchase plan which will enable eligible shareholders to apply for up to $30,000
  • According to Managing Director Jason Stirbinskis, the money raised will be used to further develop the Quinchia project
  • Despite this news, Los Cerros has slumped 16.7 per cent and is selling share for 4 cents apiece

Exploration and mining company Los Cerros (LCL) has received binding commitments for a $2.1 million placement.

Coinciding with the placement, Los Cerros will also undertake a share purchase plan (SPP) to allow existing eligible shareholders to participate in the equity raising at the same price as the placement.

Hartleys Limited will be acting as a Lead Manager to the placement.

Placement

Under the placement, Los Cerros will issue up to 52.5 million fully paid ordinary shares at an issue price of $0.04 per share to raise approximately $2.1 million.

Subject to shareholder approval, investors taking part in the placement will receive one attaching option for every two shares subscribed in the placement, with each option having an exercise price of $0.10 and an expiry date of two years from the date of issue.

The placement will be issued in two phases with phase one issuing up to 24,939,860 shares to raise up to $997,504.40.

Phase two will see the issue of up to 27,560,140 shares to raise up to $1,102,405.60, however, this is subject to approval at a general meeting scheduled for March 2020.

Subject to shareholder approval, Directors of Los Cerros will subscribe for up to 3,125,000 shares to raise up to $125,000 under the same terms of phase two.

Share Purchase Plan

Los Cerros is also providing an opportunity for eligible existing shareholders to take part in a share purchase plan at a price of $0.04 per shares to apply for up to $30,000.

Subject to shareholder approval, applicants in the SPP will also receive one free attaching option for every two shares issued.

Each option will also have an exercise price of $0.10 and expire two years from the date of issue.

The SPP will provide an opportunity for all shareholders to increase their holding in Los Cerros and the company progresses its exploration program.

"We thank our shareholders who have supported this placement and welcome new investors to our register," Managing Director Jason Stirbinskis said.

"With funds to be raised through this placement and SPP, we eagerly look forward to further developing the Quinchia project which includes Tesorito, Chuscal and Miraflores," he added.

Los Cerros' Quinchia project is located in central west Columbia, 100 kilometres south of Medellin, and is known for its high grade epithermal and breccia hosted gold and silver.

Money raised will be used to fund exploration and further develop the 10,542 hectare project portfolio.

Despite this news, Los Cerros has slumped 16.7 per cent and is selling shares for 4 cents apiece at 3:22 pm AEDT.


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