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Highlights
- Ark Mines is eyeing to raise AU$3.055 million through a share placement.
- The placement was oversubscribed and received firm commitments from new and existing shareholders.
- The proceeds would be used to fuel rare earths exploration program at Sandy Mitchell.
Australian mining company Ark Mines Ltd (ASX: AHK) seeks to raise AU$3.055 million through a placement to professional and sophisticated investors. The ASX-listed company shared that the capital raise was oversubscribed and received support from existing and new shareholders.
The issue price under the placement is AU$0.29 per share, representing a discount of 19.40% to the last traded price.
Investors will receive one free attaching option for two shares allocated under the placement. The option's exercise price is AU$0.40 with expiration in three years from the date of issue.
Proceeds from the fund-raising program will be directed towards advancing rare earth exploration activities at Sandy Mitchell Project.
Details of the share placement
The placement will see issue of over 10.5 million new shares at an issue price of AU$0.29 per share. The issue price is an 18.65% discount to 5-day VWAP, 10.41% discount to 15-day VWAP and a 19.40% discount to the last traded price. The settlement of shares is expected around 20 July 2023 and allotment is likely around 26 July 2023.
Ark Mines has received firm commitments from the clients of Barclay Pearce Capital Management Pty Ltd and Sanlam Private Wealthy Pty Ltd. They are the joint lead managers to the placement and will be paid a 6% capital raising fee.
The options are subject to shareholder approval to be sought at the company’s next annual general meeting.
Sandy Mitchell Project
The project, 100% owned by Ark Mines, is an advanced rare earths project in North Queensland. The project contains all 8 critical light rare earths elements and 8 of the 9 heavy rare earths (excluding only Lutetium), highlights the company.
AHK has completed its maiden, Phase 1 drill program to test for rare earths and heavy minerals across the project. To know more, read here.
