- Pacifico Minerals has received binding commitments for $10 million under the Share Placement, with the Placement price of $0.018 per share
- Pacifico will also undertake a Share Purchase Plan for further raising up to $2 million.
- The funds from the capital raising to be utilised for fully funding a Definitive Feasibility Study (DFS) and reaching a Final Investment Decision on its Sorby Hills Project.
- Pacifico has recently released a Pre-Feasibility Study which highlights compelling economics and technical strength of the project.
Pacifico Minerals recenrly received confirmation from the Federal Government’s Northern Australia Infrastructure Facility that funding assessment process has advanced to the Due Diligence Stage.
Australian explorer, Pacifico Minerals Limited (ASX: PMY) appears to be playing out its cards well to advance its exploration and strategic undertakings at Sorby Hills Lead-Silver-Zinc Project. In a significant update on 18 September 2020, Pacifico announced a capital raising to raise up to $12 million. The capital raise is garnered towards funding a Definitive Feasibility Study (DFS) at the Sorby Hills Joint Venture and also reach a Final Investment Decision on the project.
Pacifico Minerals has received binding commitments for $10 million under the Placement, while it also plans to undertake a Share Purchase Plan for raising up to $2 million.
Recent Activities and Plans for Utilising Capital Raising Funds
Sorby Hills is a Joint Venture between Pacifico (75%) and contributing partner Yuguang (Australia) Pty Limited (25%). Yuguang is a wholly owned subsidiary of Henan Yuguang Gold and Lead Co. Ltd, which is China’s largest Lead smelting and Silver producer.
The Company recently released a Pre-Feasibility Study (PFS), confirming technical and economic robustness of the Sorby Hills. PFS indicated strong project economics with a Pre-Tax NPV8 of $303M, Pre-Tax of IRR 46%, along with strong cash flows, supporting debt for a significant portion of the upfront capital requirement.
Furthermore, Pacifico Minerals recently received confirmation of the project’s advancement to the Due Diligence Stage of funding assessment process carried out by Federal Government’s Northern Australia Infrastructure Facility (NAIF).
The capital raise boosting the liquidity of the Company is expected to further progress the key development activities.
Lens through the Placement
The successful capital raise, which was strongly supported by quality institutional and strategic shareholders, has offered liquidity boost to the Company. The shares will be issued at the Placement price of $0.018 per share, which represents:
- A 12.3% discount to the last 5-days volume-weighted average price (VWAP) of $0.0205
- An 18.2% discount to the closing price of PMY shares on 15 September 2020, which was $0.0220.
The new shares to be issued under the Placement will rank equally in all respects with the existing ordinary shares on issue. A maximum of 555,555,920 fully paid ordinary shares will be issued.
Euroz Securities Limited and Shaw and Partners Limited acted as Joint Lead Managers in respect of the Placement, while BurnVoir Corporate Finance advised the Company.
Casting an Eye over Share Purchase Plan
Along with the Placement, Pacifico Minerals also plans to offer all existing and eligible investors the opportunity to subscribe for new shares at $0.018 per share. The share price under the SPP offer is the same as the Placement Shares.
Each investor can subscribe up to a maximum of 1,666,667 shares worth $30,000 under the SPP, which will be capped at $2 million. Significantly, the maximum number of shares to be issued under the SPP offer is 111,111,111.
The offer will open on 25 September 2020 and close on 6 October 2020. The issue date is 12 October 2020.
PMY shares closed at $0.019 on 18 September 2020, generating a return of over 633% in the past six months.
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