Highlights
- Raiden has entered into an at-the-market (ATM) facility that provides standby equity capital of AU$2 million over three years.
- The facility offers flexibility to strengthen the company’s balance sheet to fund development and exploration activities across its projects.
- The company is focused on advancing its Pilbara battery metal projects.
Raiden Resources Limited (ASX: RDN, DAX: YM4) has finalised and entered an at-the-market facility (ATM) with 8Equity Pty Ltd. The financing deed provides RDN with standby equity capital of up to AU$2 million over three years.
The ATM facility provides the company with the flexibility to strengthen its balance sheet as the ASX-listed company advances its Pilbara battery metal projects.
Click here for RDN’s June quarterly update.
ATM overview
RDN retains full control over all the aspects of ATM, when and whether to use the facility.
During the term, RDN can issue one or multiple finance requests by defining the amount to be raised or shares to be sold, the minimum price of the funds if to be raised and the time over which it would like the request to be fulfilled.
Under the facility, the company intends to issue 96 million shares (advance subscription shares) at nil cash consideration to the financer, subject to shareholder approval. These shares will serve as security for the obligations the financer will have to the company.
After three years, if there are any unissued advanced subscription shares, then they will be either cancelled for zero consideration, sold on the market or retained by the financer at an agreed price to be determined by the company.
Also, read about RDN’s agreement for Pilbara lithium rights
RDN shares traded at AU$0.011 apiece on 8 August 2023.