Andromeda Metals Ltd (ASX:ADN, OTC:ANDMF) has taken total recent capital raising proceeds to approximately $3.82 million, before costs, after completing a pro-rata 1 for 13 entitlement offer.
A further $421,380.73 was raised from the entitlement offer by the issue of 35,115,061 shares and this followed the placement which raised $3.4 million.
These capital raising initiatives were both undertaken at $0.012 per fully paid ordinary share and with a free attaching listed option for every share subscribed, exercisable at $0.0175 and expiring September 30, 2027.
READ: Andromeda Metals raising funds to progress Great White Project
Directors support raisings
The additional amount raised under the entitlement offer comprises:
- approximately $260,000 by way of the take up of entitlements by eligible shareholders, including directors Mick Wilkes and Austen Perrin;
- approximately $140,000 from eligible shareholders under the Top-Up Facility, which allowed eligible shareholders to take up securities in addition to their entitlements; and
- $10,000 from each of executive chair Sue-Ann Higgins and acting CEO Sarah Clarke out of the remaining shortfall.
Andromeda has also issued 35,115,061 free attaching options to those participating in the entitlement offer and shortfall.
Shortfall offer
Following shareholder approval at the company’s General Meeting on October 10, 2024, a further 283,333,344 options were issued to placement participants and 20 million options were issued to nominees of the joint lead managers to the capital raising.
The company will have three months from the closing date of October 7, 2024, to place the remaining shortfall of approximately $2.7 million (225,925,730 new shares and 225,925,730 new free attaching options).
Use of funds
Andromeda Metals thanks those shareholders who participated in the entitlement offer for their support.
The capital raising was designed to support the progression of the company’s flagship Great White Project in South Australia.
Funds raised will be allocated towards advanced plant design and engineering, product and market development and other activities required to secure project financing for the project.
READ: Andromeda Metals progressing Great White Project financing ahead of final investment decision