Azure Minerals Ltd (ASX:AZS, OTC:AZRMF) has been overwhelmed by the response to its share purchase plan (SPP) aimed at raising $10 million and has decided to close off applications early.
Applications for the SPP announced on August 21, 2023, have exceeded the targeted raising amount and as a result the SPP will now close at 3:00pm AWST on September 8, 2023.
This decision also means the company will minimise the scale-back of applications for shares under the non-underwritten SPP.
Follows placement
The strong demand for fully paid ordinary shares in the SPP follows the completion of the first tranche of a placement which raised approximately $100 million at the same issue price of $2.40 per share.
READ: Azure Minerals receives commitments to raise $120 million; launches $10 million SPP
Tranche 2 of this placement, which includes the issue of shares subject to shareholder approval, is set to raise approximately $20 million.
Major shareholders SQM Australia Pty Ltd and Creasy Group’s Yandal Investments Pty Ltd signed pre-commitment letters to participate in the placement to maintain their 19.98% and 13.37% holdings respectively.
SQM also intended to top-up its shareholding to 19.99% by participating in the subsequent SPP.
Scale back
Azure advises that any further applications received after the revised SPP closing date will not be accepted and those application monies will be returned in full to the applicant (without interest).
The company will undertake a scale-back of applications received prior to the revised closing date in accordance with the terms of the SPP.
Any application money refunded by Azure will be paid by cheque or direct credit (the payment method will be determined by Azure in its absolute discretion) in Australian dollars.
To facilitate the timely provision of any refunds, Azure encourages applicants to the SPP to provide their direct credit details online at www.computershare.com.au/easyupdate/AZS.
Azure expects to issue shares pursuant to the SPP on September 15, 2023.
Well-capitalised
Once the placement and SPP are settled, Azure will be 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 as the company advances toward announcing a maiden lithium mineral resource targeted in Q1 of 2024.
Following the placement, Azure’s managing director Tony Rovira said: “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.
"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.”