- Renascor Resources (RNU) has received firm commitments to raise $1.4 million to advance the Siviour Graphite Project
- More than 125 million shares will be issued to investors for 1.1 cents each
- Money raised from the placement will be used to fund pre-construction workstreams for the project as well as front end engineering and design
- The company also announced a share purchase plan to raise an additional $500,000
- Renascor is currently down 15.4 per cent with shares trading for 1.1 cents apiece
Renascor Resources (RNU) has received firm commitments to raise $1.4 million to advance the Siviour Graphite Project.
Up to 125,727,273 shares will be issued to professional and sophisticated investors at a price of 1.1 cents each.
This price represents a 15.4 per cent discount to the last closing price and a 14.7 per cent discount to the volume-weighted average price.
Renascor has also announced a share purchase plan (SPP) for all eligible shareholders to raise up to $500,000 – with shares also priced at 1.1 cents.
If the demand for SPP exceeds this amount Renascor has the right to close it early and will then scale back applications in its discretion.
When scaling back applications Renascor will take into account into a number of factors including the size of the applicant’s shareholding and the extent to which eligible shareholders have bought additional shares.
“Following the successful completion of the Siviour Definitive Feasibility Study, Renascor is poised to advance key workstreams for the Siviour Graphite Project,” Managing Director David Christensen stated.
“Completing the combination of bulk samples for marketing purposes, FEED work, engaging with potential debt financiers, and executing binding offtake agreements will further de-risk the project and draw Siviour closer to commencement of construction during 2020,” he added.
The Siviour Project is located on South Australia’s Eyre Peninsula and the money raised from the placement will be used to fund pre-construction workstreams for the project.
Other uses for the money include bulk sampling, product qualification and marketing, front end engineering and design (FEED), engagement with potential debt financiers, and advancing its spherical graphite production strategy.
Renascor is currently down 15.4 per cent with shares trading for 1.1 cents apiece at 2:16 pm AEDT.