Pacifico Minerals have issued approximately 666 million shares to sophisticated and professional investors at $0.006 per share.
This will raise $4 million, before costs, and be undertaken in two stages with the second stage being subject to shareholder approval at the next general meeting.
The funds raised will be used to finalise its 75 per cent purchase of the Sorby Hills Project which will continue to phase two to infill and expand drilling and production updates.
Sorby Hills is a lead-zinc-silver project located in Western Australia’s Kimberly region, which has had extensive exploration over the years.
Pacifico has received an extension on payment for the Sorby Hills Project amounting to $2.5 million and being pushed back to 15 April.
Phase one will issue 410 million shares at a price of $0.006 per share to raise $2.46 million issued under its existing capacity.
It is believed that these shares will be issued on Monday 15 April.
Phase two will issue 256,666,667 shares also at $0.006 per share to raise $1.54 million, however, it will be subject to shareholder approval which will be discussed at a general meeting to be held in late May 2019.
Pacifico received abundant support from institutional and professional investors with the placement attracting strong interest with the demand for shares being higher than what was available.
Managing Director Simon Noon commented that this support is good for the confidence of the company.
“The response to the capital raising from both new professional investors and our major shareholders has been extremely encouraging and I believe this is a testament to the quality and potential of the Sorby Hills project,” he said.
Please find announcement attached here: https://hotcopper.com.au/data/pricesensitive/announcements/ASX/6A926402_PMY.html