Alta Zinc Limited (ASX: AZI) today announced the completion of 452,668,603 fully paid ordinary shares relating to the share applications it received under the right issue offer.
The metals and mining sector company, Alta Zinc, previously announced the pro-rata non-renounceable Rights Issue offer to raise up to ~$4.381 million, before cost. By way of this right issue, eligible shareholders were offered to subscribe for 4 new shares for every 5 existing shares held at an issue price of $0.004 per share, and also to apply for additional shares under a shortfall facility.
Following the close of the offer, 5 April 2019, the company announced that it has received the valid application for 452,668,603 shares worth $1,810,674, including the additional applications of $78,070 under the shortfall facility. This represents approximately 41% of all new shares offered under the Right Issue.
The new shares to be issued, including additional shares, were duly allotted to shareholders today, 12 April 2019, which are expected to commence normal trading by 15 April 2018.
The company intends to utilise the proceeds raised via right issue towards the funding of Gorno Project as part of its ongoing strategy to “upscale” the development plan for Gorno Project. The Project emphasis has been placed on the conduct of a resource definition drilling campaign for the highest priority exploration target, Pian Bracca, within the Gorno Project Area to the east of the existing Colonna Zorzone deposit. The funds will reportedly be further used in the application finalisation and renewal of the Monica Mining licence including the progress of the other exploration licences at the Gorno Project.
Alta further intends to establish the interpretations and conclusions on receiving the positive results from the drilling campaign while completing the winter environmental baseline monitoring required to finalise the Environmental Impact Assessment in parallel.
Beside Alta’s flagship Gorno Projects, the funds from Right Issue are stated to be applied to evaluate the potential of Punta Corna, the site of historic cobalt mining in Piedmont, northern Italy where the Company announced positive “maiden” sampling results late last year; continue value enhancing activities on exploration projects held in Australia; and meet general working capital requirements as they arise.
Following the allotment of 452,668,603 new shares, issued capital of Alta Zinc stands at 1,821,634,311 fully paid ordinary shares. As at 31 December 2018, the company’s cash balance was $936,927 with net assets amounting to $1,579,807.
In today’s trading session, AZI stock price sky-rocketed by 33.33% to trade at $0.004 on 12 April 2019 (2:34 PM AEST). The market capitalisation of the company stands at $4.11 million as stated on the Australian Securities Exchange.
The stock has been struggling through bearish market sentiments since the past 5 years. It can be seen that AZI declined by 78.79% in the past 5 years including a negative price change of 70.07% over the past 12 months and a -34.15% change in the last three months.
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