Far East Gold Ltd (ASX:FEG, OTC:FEGDF) has raised A$2.3 million in a placement and has announced a share purchase plan (SPP) for up to A$2 million with funds to advance its portfolio of potential tier-1 copper and gold assets in Indonesia.
The company has received binding commitments from sophisticated and professional investors in the placement and will issue 16,911,764 new shares at an issue price of A$0.136 per share.
SPP to be launched
Following the success of the placement, an SPP has been planned at the same discounted price as the placement with the aim to raise a further A$2 million.
This will open at 10 AM AEST on August 1, 2024, and the offer price of A$0.136 per share represents a discount of 24.44% to the last closing price on July 26, 2024, and a 20% discount to the 5-day volume-weighted average price (VWAP) before the date the SPP was announced.
Funds raised will primarily be used for the Indonesian projects, including executing the Woyla Project maiden resource, the Trenggalek Project phase 1 drilling and the Idenburg Project JORC 2012 resource upgrade.
“On cusp of exciting things”
Far East Gold CEO Shane Menere said, “I would like to welcome new shareholders to the company and thank those existing shareholders who continue to support FEG by participating in the placement.
“The company is on the cusp of some very exciting things and we are looking forward to further progressing our three potential Tier-1 assets.”
Use of funds
Specifically, proceeds from the placement and SPP will be used to execute the following:
Woyla Project - maiden resource, incorporating recent and highly prospective drilling results - including ARD-009 returning one of the project’s best cumulative gold metre intercepts to date of 20 metres at 7.57 g/t gold and 8.5 g/t silver (7.67 g/t gold-equivalent).
Trenggalek Project - phase 1 drilling at the highly prospective Sumber Bening prospect. The drill program is developed jointly by the company and the world-class geotechnical team of FEG’s strategic partner, Eurasian Resources Group.
Idenburg Project - JORC 2012 utilising the historical estimate data developed by previous owners of the project. Idenburg has had exploration and permitting obstacles removed and now enjoys the status of Production Forest, paving the way for detailed exploration and project development.
Funds will also be allocated to general working capital and the cost of the offer.
Placement details
Settlement of the placement is expected to occur on Wednesday, August 7, 2024, with the new shares to be issued and commence trading on the ASX on Thursday, August 8, 2024.
New shares will rank equally with Far East Gold’s existing shares with effect from their issue.
The placement shares will be issued pursuant to ASX Listing Rule 7.1, with the exception of 2,573,529 shares subscribed for by entities associated with directors Shane Menere and Justin Werner.
Placement shares to be issued to unrelated parties (14,388,235) are expected to be issued on or around August 7, 2024.
Shares to be allotted to entities associated with the directors are subject to shareholder approval which the company will seek as soon as possible. If approved, these shares will be in addition to those issued to unrelated parties pursuant to ASX Listing Rule 7.1.
SPP offer
In the SPP, the company will offer eligible shareholders who were registered shareholders as at 7PM AEST on July 30, 2024, the opportunity to apply for up to A$30,000 of new fully paid ordinary shares.
Shareholders can request an electronic copy of their personalised SPP application form be emailed to them as soon as available from this link: https://fareastgold.investorportal.com.au/far-east-gold-request-form/
Reach Markets is the lead manager of the SPP and was the advisor managing the placement.
Shareholder briefing
Chairman Justin Werner will hold a live shareholder briefing on Tuesday, August 6, 2024, at 12pm (AEST). Register here - https://fareastgold.investorportal.com.au/shareholderbriefing-spp/