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Province Resources (ASX:PRL) - Managing Director, David Frances - The Market Herald
Managing Director, David Frances
Source: Business News
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  • Junior explorer Province Resources (PRL) has called a two-day trading halt as it prepares to tap investors for some fresh funding
  • The company this morning announced its plans to launch the capital raise, though it is yet to reveal the details of the plan
  • At this stage, details of the raise are set to be announced when the trading halt lifts on Thursday, May 20
  • The capital raise comes not long after Province completed its purchase of private company Ozexco, gaining access to seven exploration licence applications in WA
  • Taking a look at Province's most recent financial report, the company had just over $6.6 million worth of cash in the bank at the end of March
  • Shares in Province Resources last traded for 18 cents on Monday, May 17

Junior explorer Province Resources (PRL) has called a two-day trading halt as it prepares to tap investors for some fresh funding.

The company this morning announced its plans to launch a capital raise, but so far no details about the raise have been revealed.

As such, it's not yet known how much Province plans to raise, for what it will use the funding, and at what price new shares will be sold under the raise.

At this stage, Province shares will remain in a trading halt until Thursday, May 20, unless the company announces the details of the raise before then.

Today's announcement comes not long after Province completed the purchase of exploration company Ozexco, which gave PRL access to seven exploration licence applications in WA's Gascoyne region.

Some of the tenements under the purchase are considered prospective for salt, potash and mineral sands, according to Province, while others have the potential to become home to a renewable green energy project.

The all-scrip deal was paid for by the issue of 50 million PRL shares to the sellers at 1.5 cents each, with another 50 million performance shares based on the progress of the renewable green hydrogen project.

On top of this, Province reimbursed the sellers for $80,000 already spent on the tenements.

Taking a look at Province's most recent financial report, the company had just over $6.6 million worth of cash in the bank at the end of March after posting net cash outflows of roughly $370,000 over the March quarter.

This means if spending stays consistent, the company had over 18 quarters of funding left at the end of March. Given the recent Ozexco purchase, however, Province could have some bigger plans for coming weeks and months.

Shares in Province last traded for 18 cents on Monday, May 17. The company has a $167 million market cap.

PRL by the numbers
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