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Superior Resources (ASX:SPQ) - Managing Director, Peter Hwang (right)
Managing Director, Peter Hwang (right)
Source: Sydney Mining Club
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  • Gold and base metals explorer Superior Resources (SPQ) is ready to raise $1.18 million in a placement and rights offer to fund drilling and a scoping study at Superior’s Steam Engine Gold Deposit
  • More than 144 million shares will be issued to sophisticated and institutional investors at a price of 0.3 cents per share to raise $434,700
  • To raise the remaining funds, a rights issue will be offered to existing shareholders where one new share will be issued for every three held
  • Shares will be priced at 0.3 cents to raise the remaining $745,000
  • The money raised from both the placement and rights issue will be split between the Steam Engine Gold Deposit, the Wyandotte Copper Prospect, and the Big Mag Prospect
  • After being reinstated back onto the market, Superior has ended the day with no change and shares trading for 0.4 cents each

Gold and base metals explorer Superior Resources (SPQ) is ready to raise $1.18 million in a placement and rights offer to fund drilling and a scoping study at Superior’s Steam Engine Gold Deposit.

Approximately 144,900,000 new shares will be issued to sophisticated and institutional investors at a price of 0.3 cents per share to raise $434,700.

These shares had a 25 per cent discount to the last closing price of 0.4 cents.

Subject to shareholder approval, subscribers will receive one free attaching option for every three placement shares issued.

These options will have an exercise price of 0.6 cents and will expire on December 31, 2021.

This placement will be completed in two phases, with phase one issuing 111,812,810 shares and phase two issuing the remaining 33,087,190 shares and 48,300,000 attaching options.

However, phase two is subject to shareholder approval which will be sought at a meeting in late June.

Settlement of phase one is expected to occur on May 27.

To raise the remaining $1.18 million, a rights issue will be offered to existing shareholders, where one new share will be issued for every three held.

Shares will be priced at 0.3 cents to raise the remaining $745,000.

Shareholders who subscribe to the rights issue will also receive one free attaching option for every three entitlement shares issued.

These options will also have an issue price of 0.6 cents and will expire on December 31, 2021.

The money raised from both the placement and rights issue will be split between the Steam Engine Gold Deposit, the Wyandotte Copper Prospect, and the Big Mag Prospect.

Some money will also be used for general working capital.

“We have been very pleased with the level of support and strong demand received during the placement. This has given us confidence that we will be sufficiently funded to complete a scoping study on the Steam Engine Gold Deposit and establish a maiden high-grade copper resource at Wyandotte,” Managing Director Peter Hwang commented.

“In addition to Steam Engine and Wyandotte, we are planning a low-cost maiden exploration program at the high-impact Big Mag sulphide nickel-copper target,” he added.

After being reinstated back onto the market, Superior has ended the day with no change and shares trading for 0.4 cents each.

SPQ by the numbers
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