- First Au Limited has received firm commitments to raise AU$1.84 million (before costs) from the investors.
- FAU will float 153,657,188 fully paid ordinary shares to sophisticated and professional investors.
- The funds will be utilised to accelerate exploration activities in South Australia’s Mabel Creek Project and projects in East Gippsland, Victoria.
Advanced gold and base metals exploration company, First AU Limited (ASX:FAU, OTCQB: FRSAF), has hit the headlines followed by an update related to the development of its Victorian and Mabel Creek Projects.
In a cheery announcement, the company announced that it had received firm commitments from the investors to raise AU$1.84 million via Placement of shares. The securities of the Company were on a trading halt since Monday and resumed trading on Wednesday morning.
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Share Placement Plan
FAU has made commitments for the placement of 153,657,188 fully paid ordinary shares to sophisticated and professional investors.
The placement of shares will be undertaken by the Company as per the ASX Listing Rules at a price of AU$0.012 per share. The issue price represents a discount of over 15.69% against the 15-trading day volume-weighted average price (VWAP) of the Company’s ordinary share prior to the date of this announcement.
FAU has also proposed a free-attaching option on every two Placement Shares with the same terms as existing quoted options of the Company. However, the issue of the Placement Options is subjected to the approval of shareholders.
The Company had appointed EverBlu Capital Pty Ltd as the Lead Manager to the Placement.
Share Purchase Plan (SPP)
First AU has also proposed to conduct a Share Purchase Plan, allowing its existing shareholders to participate in the capital raising round. Under the Share Purchase Plan, eligible shareholders will be able to apply for new fully paid ordinary shares worth up to AU$30,000 at a price of AU$0.012 a share.
The Share Purchase Plan is expected to raise up to AU$450,000. The Company has also proposed a similar free-attaching share option with every two SPP shares. However, the issue of SPP options is subjected to the approval of shareholders.
The funds raised through the Share Placements and Share Purchase Plan will be utilised to accelerate exploration activities in South Australia’s Mabel Creek Project and the projects in East Gippsland, Victoria.
The raised funds are proposed to be used in the following tasks, stated as follows:
First Au closed at AU$0.012 a share on 13 October 2021.