Victory Mines Limited (ASX:VIC) has received firm commitments to raise $2.0 million, before cost, through an institutional share placement with Shaw & Partners acting as Lead Manager.
Image Source: © Kalkine Group 2020
Issue Size, Number of Shares, and the Issue Price
Under the firm commitments received by the Company, VIC would issue 800,000,000 fully paid ordinary shares at a face value of $0.0025 a piece to raise $2.0 million.
The face value or the issue price of $0.0025 represents a 6.67 per cent discount to Victory’s last closing price on 20 January 2021 and an 18.19 per cent discount to its 15-day volume-weighted average price (VWAP).
Under the existing placement capacity in accordance with ASX Listing Rule 7.1 and 7.1A, the Company would issue 750,000,000 fully paid ordinary shares post seeking approval from shareholders.
In the issue of 750,000,000, 338,367,851 new shares would be under ASX Listing Rules 7.1 and 441,632,149 new shares would be under ASX Listing Rules 7.1A.
Moreover, VIC would also seek shareholder approval pursuant to the Listing Rule 7.1 of the exchange to issue 200,000,000 unlisted 1 for 4 options, exercisable at $0.003 a share on or ahead of 31 December 2024 to subscribers to the placement.
Furthermore, the ASX-listed gold miner – Ramelius Resources Limited (ASX:RMS) would also participate in the institutional placement in order to maintain its 6.79 per cent stake in the Company.
Commitments Received From Many Firms
Image Source: © Kalkine Group 2020
Additionally, Strike Drilling Pty Ltd, currently providing drilling service at the Company’s Coogee Gold project would also participate in the placement while subscribing $250,000 in the same. Likewise, Affiliates of Serena Minerals Limited would subscribe $200,000 in the placement.
Apart from all this, the directors of the Company have nodded to subscribe for a further 50,000,000 fully paid shares along with 12,500,000 options, subject to shareholder approval.
Selling Fee for the Placement
In the overall placement process, the Lead Manager would receive a 6 per cent selling fee on the majority of funds raised. Additionally, Shaw & Partners would also receive 125,000,000 unlisted option exercisable at $0.003 a share on or before 31 December 2024, subject to shareholder approval.
Furthermore, as a provision of ongoing services from Shaw & Partners for 12 months, the Company has agreed to pay an advisory fee of 30,000,000 fully paid ordinary shares.
VIC plans to utilise the net proceeds from the placement in funding resource drilling at the Coogee Gold project while also pushing further exploration work on other assets. Besides that, the net proceeds would also be utilised as a general working capital.
The stock of the Company last traded at $0.003 (as on 22 January 2021, 1:11 PM AEDT), down by 12.500 per cent against its previous close on ASX.
