AuKing Mining Ltd (ASX:AKN) will use $600,000 to be raised in a placement to sophisticated and professional investors along with company board members for further exploration on its Tanzanian uranium and copper projects.
Firm commitments have been received from sophisticated and professional investors to raise $600,000 (before costs) through the issue of 40 million shares at an issue price of 1.5 cents each.
Additionally, a series of free-attaching options will be issued with the placement shares on a 1:4 basis exercisable at 3 cents on or before April 30, 2027.
Board chairman Asimwe Kabunga and director Peter Tighe have demonstrated their confidence in the company by agreeing to participate in the placement to the extent of $150,000, subject to shareholder approval.
Use of funds
AuKing is a mining exploration company focused on uranium and copper in Tanzania as well as copper and zinc projects in Australia.
The company said the placement proceeds would be used for:
- Further exploration activities in Tanzania;
- General working capital; and
- Payment of placement costs.
Placement details
Placement shares, excluding the director participation, will be issued without shareholder approval in line with AuKing's existing placement capacity under Listing Rule 7.1 and 7.1a.
The options will be issued after approval is obtained from shareholders at an extraordinary general meeting (EGM) to be convened for early July 2024. This also applies to the shares and options to be issued to Kabunga and Tighe or their associated entities.
AuKing expects the placement shares to be issued as soon as possible. The attaching options and the director shares and options will be issued immediately after the proposed EGM is held, assuming shareholder approval is obtained.
The company has engaged Vert Capital Pty Ltd to act as lead manager to the placement.