Eastern Metals Ltd (ASX:EMS) will raise $1.4 million to expedite rare earths exploration at the Currawalla mine site, as well as other metals exploration.
The company is keen to follow up on the “significant results” it saw from recent preliminary exploration at the old prospecting pit of Currawalla Mine on the Tara exploration licence in the Cobar Basin, New South Wales.
Read: Eastern Metals sets sights on high-grade rare earths at former base and precious metals mine on Tara licence
It will raise the $1.4 million (before costs) at an issue price of $0.05 per new share if fully subscribed, together with a free unlisted new option for every two new shares acquired, exercisable at $0.10, expiring three years after the closing date, unless previously exercised.
The entitlement issue price represents a 29.6% discount to the $0.071 last price and a 20.4% discount to the 30-day VWAP of EMS shares on Thursday May 4.
The theoretical ex-rights share price (TERP) is A$0.064.
Under the entitlement issue, eligible shareholders will be able to subscribe for one new share for every two shares held at 7.00pm (Sydney time) on Wednesday May 10.
This is non-renounceable entitlements offer and will not be tradeable on ASX or transferable.
The company expects to issue some 27.45 million new shares and 13.73 million new options.
The entitlement issue will open on Monday May 15 and close at 5.00pm (Sydney time) on Friday June 2. It will include a top-up facility under which eligible shareholders who take up their full entitlement will be invited to apply for additional shares in the entitlement issue from a pool of those not taken up by other eligible shareholders.
Veritas Securities Ltd will act as lead manager to the entitlement issue, which is not underwritten.
Proposed timetable
EMS expects that the entitlement issue will be conducted according to the following timetable:
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