Azure Minerals Ltd (ASX:AZS, OTC:AZRMF) has completed its share purchase plan (SPP) aimed at raising $10 million to accelerate the exploration of the high-grade Andover Lithium Project in Western Australia’s West Pilbara region.
Under the SPP announced on August 21, 2023, eligible shareholders could apply for up to $30,000 of new fully paid ordinary shares in the company at the issue price of $2.40.
The ASX-lister received applications totalling $37,764,841 from 2,058 eligible shareholders, representing a participation rate of 27% and an average application amount of $18,350.
While this exceeded the targeted raising amount, it remained capped at $10 million.
Firm support
The strong demand for fully paid ordinary shares in the SPP follows the completion of the first tranche of an institutional placement at the same issue price, which raised $120 million.
As a result of the overwhelming support, Azure undertook a scale back of applications received prior to the revised closing date in accordance with the terms of the SPP.
Application funds subject to the scale back and those received late will be refunded today.
Financially strong
With the placement and SPP settled, Azure is well-capitalised with around $147 million cash before costs, putting it in a strong position to accelerate exploration and resource drilling at the globally significant Andover discovery.
This comes ahead of a maiden lithium mineral resource targeted in the first quarter of 2024.
“The strong support shown from both new and existing institutional investors in this placement is testament to Andover as one of the best lithium exploration projects globally,” Azure managing director Tony Rovira said last month.
"We look forward to further delineating the potential scale of this exciting discovery.
"On behalf of the Azure board and management, I wish a warm welcome to our new shareholders and thank all our existing shareholders for their long-standing support.”