Drill Rig. Source: Sultan Resources
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  • Sultan Resources (SLZ) shares dive 19.5 per cent after the company announces a $2.2 million capital raising
  • Emerging from a trading halt, Sultan revealed institutional and sophisticated investors have supported a share placement of 13.53 million shares at 16 cents each
  • The funds raised will go towards geophysical surveys and drilling at the company’s Lake Grace project in WA and exploration at its copper-gold projects in NSW
  • The shares are scheduled to be issued on or around February 2
  • Shares have been 19.5 per cent lower at 16.5 cents

Sultan Resources (SLZ) shares have dived 19.5 per cent after the company announced a $2.2 million capital raising.

Emerging from a trading halt, Sultan Resources revealed it received firm commitments from institutional and sophisticated investors for a share placement of 13.53 million shares at 16 cents each.

The issue price is an 18 per cent discount to the 15-day volume weighted average price immediately prior to the raising.

The funds raised will go towards geophysical surveys and drilling at the company’s Lake Grace nickel cobalt project in Western Australia where drilling recommenced earlier this month.

A portion of the proceeds will also be used for exploration at Sultan’s copper-gold Lachlan Fold Belt projects in New South Wales.

Xcel Capital and ARQ Capital acted as joint lead managers for the placement and fees payable are six per cent of the total funds raised as well as a management fee of $50,000.

The shares are scheduled to be issued on or around February 2.

Shares in Sultan Resources were trading 19.5 per cent lower at 16.5 cents at 1:29pm AEDT.

SLZ by the numbers
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