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Trek Metals (ASX:TKM) - Executive Director, John Young (left) and Non Executive Director, Neil Biddle (right) - The Market Herald
Executive Director, John Young (left) and Non Executive Director, Neil Biddle (right)
Source: Resources Rising Stars
  • Trek Metals (TKM) has launched a fully-underwritten $2.9 million rights offer to accelerate exploration at its recently acquired Pilbara gold projects
  • Eligible shareholders will be able to subscribe for one CHESS Depositary Interest (CDI) for every five CDIs held at the record date
  • Shares will be issued for 7 cents each, which is a 9.9 per cent discount to the 20-day volume-weighted average price
  • The funds raised will be used for maiden exploration programs at Trek's recently acquired Jimblebar and Pincunah projects
  • Exploration will include mapping, ground-truthing, soil programs and induced polarisation geophysical surveys to refine targets for initial drilling programs
  • Trek Metals closed Friday's session 12 per cent lower at 8.8 cents

Trek Metals (TKM) has launched a fully-underwritten $2.9 million rights offer to accelerate exploration at its recently acquired Pilbara gold projects.

The offer

Eligible shareholders will be able to subscribe for one CHESS Depositary Interest (CDI) for every five CDIs held at the record date.

Shares will be issued for 7 cents each, which is a 9.9 per cent discount to the 20-day volume-weighted average price (VWAP) and a 17.55 per cent discount to the 10-day VWAP.

The offer is fully underwritten by Westar Capital, who will receive 5 per cent of the proceeds from the offer in addition to 1.5 million unquoted options exercisable at 14 cents and expiring 18 months from the date of issue.

Entities controlled by Trek Directors Tony Leibowitz and Neil Biddle have each indicated they will commit to sub-underwriting agreements with Westar for 40 per cent each of the total underwritten amount.

The action

Funds raised will be used for maiden exploration programs at Trek's recently acquired Jimblebar and Pincunah projects in WA's Pilbara region.

Exploration activities will include mapping, ground-truthing, soil programs and induced polarisation geophysical surveys to refine targets for initial drilling programs.

Trek Executive Director John Young says the extra cash will allow the company to embark on an exciting new phase.

"This is an exciting time in the Pilbara gold region and Trek is well placed to continue our exploration programs at both Jimblebar and Pincunah, with initial results from both of these newly-acquired projects confirming strong potential for gold mineralisation," John said.

"The rights issue gives all shareholders the opportunity to participate and maintain their interest in the company as we advance to the next stage of our exploration programs," he added.

The record date for the offer is Thursday October 5, and the offer is anticipated to close on Thursday November 26.

The offer prospectus will be sent out on Tuesday November 10.

Trek Metals closed Friday's session 12 per cent lower at 8.8 cents.


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