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- Exploration company Nelson Resources (NES) has agreed to raise a further $348,000 after a successful renounceable rights issue
- The follow-up placement accommodates excess demand from the previous offer, which was oversubscribed
- Nelson Resources has issued a further 9.1 million fully paid ordinary shares, and 4.5 million attaching new options
- The options from the follow-up placement are exercisable at eight cents each and will expire on July 7, 2022
- Nelson Resources shares have risen 18 per cent today, trading for just under six cents each
Exploration company Nelson Resources (NES) has agreed to raise a further $348,000 after a successful renounceable rights issue.
The company first announced a renounceable rights issue on June 9, 2020, which was oversubscribed at its closing date. This new follow-up placement will accommodate excess demand from the previous offer.
Nelson Resources will raise the amount under the same terms as the rights issue.
The company has issued a further 9,158,618 fully paid ordinary shares, and 4,579,275 attaching new options. The issues have been made without approval from shareholders.
3,343,989 of the shares and all of the 4.57 million new options are issued under Nelson Resources’ existing capacity, under Listing Rule 7.1. The remaining 5,814,629 new shares are issued under the company’s existing capacity, under Listing Rule 7.1A.
The options from the follow-up placement are exercisable at eight cents each, and will expire on July 7, 2022. Nelson Resources will list the new options under the ASX code ‘NESOA’.
Mahe Capital has been an advisor to the company for the rights issue and follow-up placement, and acted as lead manager of the capital raising. In today’s announcement, the company acknowledged Mahe Capital for introducing new institutional shareholders to the register.
The company’s Chairman, Warren Hallam, remarked positively about participation in Nelson’s fundraising efforts.
“We are very pleased with the support shown by existing shareholders through their participation in the Rights Issue, and welcome new shareholders that have been introduced through Mahe Capital,” Warren commented.
“Nelson is now well-funded to proceed to undertake its exploration strategy,” he said.
Nelson Resources shares have risen 18 per cent today, trading for 5.9 cents each at 10:37 am AEST.
