First Au Limited (ASX:FAU) secures $1.28 Mn funding, to raise another $2.45 Mn via options issue

Be the First to Comment Read
Sponsored

First Au Limited (ASX:FAU) secures $1.28 Mn funding, to raise another $2.45 Mn via options issue

 First Au Limited (ASX:FAU) secures $1.28 Mn funding, to raise another $2.45 Mn via options issue

Summary

  • FAU secures commitments worth $1,280,000 via equity placement at an issue price of $0.017 a unit.
  • FAU would also raise another $2.45 million through a non-renounceable pro-rata options entitlement offer.
  • The capital raised would be utilised towards the exploration and drilling program at Snowstorm and Gimlet projects and general working capital.

Gold explorer, First Au Limited (ASX:FAU) strengthens its balance sheet further, secures $1.28 million.

On 8 February 2021,  the company announced on the ASX, that it has secured firm and binding commitments worth $1,280,000 via equity placement of 75,294,118 ordinary shares at an issue price of $0.017 a unit to the new and existing sophisticated shareholders.

Furthermore, the gold explorer would raise $2.45 million via a non-renounceable pro-rata option entitlement offer. This offer would provide option to the eligible shareholders to subscribe to 4 new option units for every 5 shares held as on the Record data at an issue price of $0.05 per option. A total of $3.73 million (before costs) will be raised if both the Placement and Option Entitlement issue are fully subscribed.

Image: Copyright © 2021 Kalkine Media Pty Ltd; Data Company release

User Proceeds and Fund Utilisation

The funds raised from the Placement and Option Entitlement issue will be utilised towards –

  • The drilling program at the Snowstorm project, which is planned to test structural architecture for controls on the gold mineralisation in the region.
  • The new mapping recommends potential at depth which are yet to tested by drilling around the Hibernia-Ernestine trend.
  • The exploration and drilling program are underway at the Gimlet project in Kalgoorlie of Western Australia with a potential to upgrade the existing JORC complaint inferred gold resource.
  • The general working capital includes the cost of the placement and option entitlement issue.

The drilling program at the Snowstorm project in East Gippsland Victoria is scheduled to commence in the next 2 weeks. The latest rock chip samples continued to deliver high grade gold assay results with gold grades up to 86 g/t.

Capital raising program

Equity Placement: Under the equity placement, firm commitments worth $1.28 million have been received from sophisticated and professional investors. The shares under placement will be issued in accordance with the ASX Listing Rules 7.1 and 7.1A. The issue price of $0.017 a share, represents a discount of 10.28% to the 15-day VWAP of FAU ordinary shares.

The Placement shares are anticipated to be issued on 12 February 2021. A placement fees of 6% of the funds raised may be paid to the unrelated eligible parties assisting with the placement program.

Tentative timeline for the Placement and Options Entitlement Issue Source: First Au ASX Update 8 February 2021

Options Entitlement Issue: The new options have an exercise price of $0.028 each with the proposed expiry date of 1 July 2023.

Upon exercising, each option will entitle the holder to 1 fully paid ordinary share of First Au. The record date of the option issue will be after the issuance of the Placement shares and the participant of the eligible Placement may participate further in the option entitlement issue. The company proposes to lodge a prospectus for the Option Entitlement Issue on or around 15 February 2021.

Disclaimer

Speak your Mind

Featured Articles

Ad
kalkine logo

GET A FREE STOCK REPORT

Top Penny Picks under 20 Cents to Fit Your Pocket! Get Exclusive Report on Penny Stocks For FREE Now.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK