AuTECO Minerals Ltd (ASX:AUT, OTC:MNXMF) has successfully completed a capital raise in the form of a share purchase plan (SPP), opting to raise the ceiling of the SPP from $3 million to $5 million following strong shareholder demand.
The company received valid applications from 604 shareholders, representing about 20% of its total shareholders, at an average application amount of about $15,000.
In total, the company received applications for $9.1 million shares, about three times the original target of $3 million.
AUT sees the strong SPP support as confirmation its recently announced intention to acquire the Green Bay Copper-Gold project in Newfoundland, Canada, is well supported by shareholders.
The company intends to begin exploration at Green Bay imminently, with plans for a 40,000-metre underground drilling campaign and development of a 700-metre exploration drive.
Strong shareholder support
“We appreciate the strong support we have received from shareholders and we assure them that the proceeds will be used in our strategy to create value through brownfields exploration,” AuTECO Minerals incoming managing director Steve Parsons said.
"We believe Green Bay Copper and Pickle Crow Gold both have immense exploration upside with substantial known mineralisation and extensive scope to continue expanding it through drilling.
"Our strategy is designed to capitalise on the exceptional assets we have and our core strength of brownfields exploration.
“The proceeds of the SPP will help ensure we can take full advantage of this opportunity to unlock value for AuTECO shareholders.”
The funds from the SPP will go to:
- satisfying the stage one payment of the Green Bay acquisition;
- funding expenditure on the company’s existing projects (being the Pickle Crow Project and Limestone Well Project);
- project care and maintenance costs pertaining to the Green Bay Copper-Gold Project and Pickle Crow Project;
- the expenses of the placement, SPP and acquisition; and
- general working capital.