- Sultan secures firm commitments worth $2.4 million under share placement from sophisticated and institutional investors
- Funds raised to be used for a drilling program at Sultan’s 2 main prospects in Lachlan Fold Belt, Lake Grace Project and working capital purposes
- 10,909,091 fully paid ordinary shares would be issued under the Listing Rule 7.1 and 7.1A on 2 November 2020
Seasoned gold and base metals player, Sultan Resources Limited (ASX: SLZ) announced securing firm commitments of $2.4 million (before costs) via a share placement from sophisticated and institutional investors. Under the equity placement, 10,909,091 fully paid ordinary shares will be offered at an issue price of $0.22 a share.
The Placement received an overwhelming response and support with demand substantially larger than the capital sought by the explorer. The Placement shares will be issued as per the Company’s available placement capacity in compliance with the Listing Rule 7.1 and 7.1A.
The placement shares will be compliant to the listing rule and will comprise of-
- 8,793,795 shares under the Company’s Listing Rule 7.1 15% placement capacity
- 2,115,296 shares under the Company’s additional Listing Rule 7.1A
The issuance of the Placement shares is anticipated to be on or around 2 November 2020.
The issue price of $0.22 a share offered is at a 4.8% discount to the 15-day VWAP (Volume Weighted Average Price) prior to the capital raising. The Placement shares will rank pari-passu with the already existing shares on the ASX.
ARQ Capital Pty Ltd and Xcel Capital Pty Ltd were appointed as the Joint Lead Managers for the Placement. A 6% fees would be payable for all funds raised in addition to a management fee of $40,000 to the lead managers by Sultan.
The capital raised from the Placement shares would be utilised towards the drilling program at Sultan’s two main prospects in the Lachlan Fold Belt namely, the Big Hill Copper-Gold Porphyry and Tucklan Epithermal Gold targets in New South Wales, and the Lake Grace Project in WA and for working capital.
Important Read: Sultan Completes Acquisition Of 100% Of Lachlan Fold Belt Tenure
Sultan Resources traded at $0.260 a share on 28 October with a market capitalisation of $15.82 million.
All financial information pertains to Australian Dollar unless stated otherwise.