Forrestania Resources Ltd (ASX:FRS) has extended the closing date for its share purchase plan (SPP) to raise up to $607,000 from October 31, 2024, to 5pm (AWST) on November 8, 2024.
The SPP provides eligible shareholders in Australia and New Zealand with the opportunity to acquire up to A$30,000 worth of Forrestania ordinary shares without paying any brokerage costs, commission or other transaction costs.
Funds raised from the SPP along with $344,000 from a placement will be used to partly fund drilling and exploration at the Bonnie Vale Gold Project near Coolgardie in Western Australia, other exploration programs and working capital.
SPP details
Eligible shareholders will be able to purchase shares at $0.0125 each representing a discount of 17.54% to the last closing price of $0.015 per share on October 9, 2024, and a 17.54% discount to the 5-day volume weighted average price (VWAP) of $0.015 per share.
To participate in the SPP, eligible shareholders may apply for shares in the amount of A$2,500, A$5,000, A$10,000, A$15,000, A$20,000, A$25,000 or A$30,000.
READ: Forrestania Resources eyes $950,000 in capital raise to fund Bonnie Vale gold drilling
Participation in the SPP is optional and is open to eligible shareholders who are holders of shares on the record date of 5.00pm AWST on October 11, 2024, with a registered address on the register in Australia or New Zealand.
All new shares issued under the SPP will rank equally with existing shares.
Use of funds
Forrestania intends to follow up promising drilling results from the Bonnie Vale Project, which included grades up to 7 metres at 5 g/t gold, 6 metres at 6.5 g/t and 16 metres at 2.6 g/t from between 4 and 24 metres of depth.
The project has also historically generated soil samples of up to 49 g/t gold in geochemical drilling, adding another layer of prospectivity.
On launching the placement and SPP, Forrestania chair and CEO John Hannaford said: “The market support for the capital raising gives the company a runway to accelerate exploration programs at our highly prospective Bonnie Vale Project starting with the Ada Ann drilling to be followed by regional and follow-up drill programs at this highly prospective gold project.
“This sets the company up for several potential re-rate opportunities in a very bullish gold market.
“We look forward to bringing current and new investors along for the journey.”