Caspin Resources Ltd (ASX:CPN) has received $2,074,984.20 in applications for its share purchase plan (SPP), well above its target of $1,000,000.
Under the terms of the SPP, Caspin offered eligible shareholders the opportunity to subscribe for up to $30,000 worth of new shares at an issue price of $0.30 per share.
The company intended to raise $1,000,000 under the SPP but reserved the right in its absolute discretion to accept oversubscriptions up to a maximum amount of $2,000,000.
Due to the significant demand from shareholders to participate in the SPP, Caspin has resolved, subject to shareholder approval, to accept the maximum amount of $2,000,000.
Accordingly, SPP applications will need to be scaled back, which will be at the board’s discretion.
Excess application monies after the completion of the scale back and the closing date, will be refunded to applicants pursuant to the terms and conditions of the SPP documentation.
Read: Caspin Resources surges on delivering ‘groundbreaking’ rare earth discovery at Mount Squires Project
Caspin shares recently surged upon identifying significant rare earth elements (REE) from assaying of Duchess aircore holes at its Mount Squires Project in Western Australia, which the company described as a “sensational discovery”.
Stand-out assays included 46 metres at 0.71% TREO (total rare earth oxides) from 32 metres, including 22 metres at 1.25% TREO from 48 metres.
The discovery highlights the potential to identify significant deposits of REE elsewhere in the project with REE focused targeting and geological review underway.
Furthermore, Caspin is planning a reverse circulation (RC) drill program to test extensions and obtain samples for metallurgical test work.