Shree Minerals completes placement with $1.2 million committed, Stocks 33.33% up

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Shree Minerals completes placement with $1.2 million committed, Stocks 33.33% up

 Shree Minerals completes placement with $1.2 million committed, Stocks 33.33% up

Summary

  • Shree Minerals to issue 200 million shares at an issue price of $0.006 a share
  • The issue price is at a 7.1% discount to the 10-day VWAP, shares at $0.008 a share
  • Directors & related parties seek participation by investing $300,000 in the placement program
  • Shree Minerals seeks to start geochemical sampling programs upon granting of exploration license in the Lachlan Fold Belt

Shree Minerals Ltd (ASX: SHH), the experience iron ore developer and explorer, announced the successful completion of the placement program which received firm commitments worth $1.2 million at $0.006 a share before costs from professional and sophisticated investors.

On 3 August, Shree had requested a trading halt on the securities on ASX until 6 August awaiting for an update regarding the capital raising program.

Under the placement program, a total of 200,000,000 fully paid ordinary shares will be issued at the issue price of $0.006 per share. 89,226,311 shares will be issued adhering to the Shree’s 15% placement capacity as per ASX Listing Rule 7.1; an additional 10% (60,773,689 shares) placement capacity under ASX Listing Rule 7.1A; and are expected to be issued on Friday, the 14 August 2020. At the same time, a balance of 50,000,000 shares to be issued subject to shareholder’s approval to related parties.

The issue price for the placement is $0.006427 per share, offered at a discount of 7.1% to the 10-day VWAP as on 31 July 2020.

Shaw and Partners have managed the placement program in lieu of a management and selling fee of 6% of proceeds from the placement program, excluding the amount raised from the director’s portion.

Directors & Related parties pledge seeks to invest $300,000

The Directors and associated parties have sought participation by investing $300,000 subscribing to 50,000,000 shares in the share placement program. The participation is subject to the approval by shareholders at the general meeting in and around September 2020.

Shree Minerals will update on the proposed shareholder meeting and issue a notice of the meeting in due course.

Upon completion of the placement program which includes further investment by directors, Shree’s total issued capital will stand at (excluding any exercising of existing options) –

The share placement also includes issuing of 1,500,000 shares to service provides under Shree’s 15% placement capacity as per ASX Listing Rule 7.1. These shares will not be issued for cash consideration, instead for rending consultancy services to the company.

The funds received will be Used for:

  • Undertake exploration programs
  • To evaluate new opportunities
  • To meet NBR (Nelson Bay River Iron Project) project expenses

Expanding portfolio, Shree now in the Lachlan Fold Belt

Shree Minerals recently applied for an exploration licence in the prospective Lachlan fold belt of New South Wales, 15 kilometres from Bathurst. Shree Minerals seeks to initiate a geochemical sampling program to test the historical gold mining sites on granting of the exploration licence.

SHH ended the day’s trade at $0.008 a share, registering an increase of ~33.33% with a market capitalisation of $3.65 million.

All financial information pertains to Australian currency unless stated otherwise.

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