A company with a focus on the exploration and development of copper and phosphate mineral resource projects in Brazil, Aguia Resources Limited (ASX:AGR) has closed a non?brokered private placement for raising gross proceeds of approximately $730,250.08.
Unboxing the Placement Details
AGR announced that approximately 9,128,126 fully paid Ordinary Shares will be issued to sophisticated and institutional investors at a price of $0.08 per share with no related parties participating in the Placement.
The placement also comprises of one half of one Unlisted Option to be issued for nil additional financial consideration with an exercise price of $0.16 holding an expiry date of 20 April 2022 for each Ordinary Share subscribed for by the investors. In case a subscriber does not have a whole number of options allocated, AGR shall round up the number of options.
Each ordinary share issued by AGR under the placement shall be ranked equally with existing ordinary shares and are fully tradeable and listed on the ASX.
The allotment of the new securities is anticipated to be undertaken on or before Friday, 24 April 2020.
Três Estradas Project Advancement
The Company looks forward to advancing the Três Estradas Phosphate Project towards construction by using the proceeds from the Placement.
AGR had already obtained the of the Preliminary License (LP) on 17 October 2019 for its Três Estradas Phosphate Project and is now accelerating its activities towards obtaining the Installation License (LI) for the same.
The LI is the only major outstanding permit required to commence construction and once the LI is obtained from the Rio Grande do Sul State Environmental Agency, AGR shall have the authority to undertake the construction of the project according to detailed plans and specifications.
Detailed Discussion at: Aguia Progressing Strongly Towards Installation License for Três Estradas Phosphate Project
Subsequent to obtaining the licence, AGR shall be allowed and is eager to commence earthworks, civil works and installation of the processing unit at the Project. Further to this, an Operation License (LO) shall be granted by FEPAM once it confirms that the site installation was concluded strictly within the guidelines detailed in the LI.
Advancing Investigation of DANF Opportunities
In addition to this, AGR looks forward to utilising the funds raised towards the advancement of the investigation of direct application natural fertilizer (DANF) opportunities, including three other projects being worked on regarding Trial Mining.
The proceeds shall also be used to help AGR ensure all its tenements remain well-positioned.
Due to the current high uncertainty in the business environment due to the Covid-19, companies across the globe have been running short on cash and have therefore resolved to stop operations. However, AGR looks forward to maintaining its general working capital requirements fulfilled through the proceeds from the placement.
The AGR stock remained suspended on 22 April 2020 and last traded at a price of $0.081.