Forrestania Resources Ltd (ASX:FRS) is embarking on a strategic initiative to turbo-charge its portfolio of lithium, copper and gold projects in WA.
The company has announced a renounceable entitlement offer, offering shareholders the opportunity to participate in the development of these promising ventures.
This cap raise of up to $1.53 million will position the company to capitalise on its exploration efforts and harness the potential of the state’s rich mineral resources.
Attractive offer terms
The renounceable entitlement issue is based on a ratio of one new share for every two shares held, priced at $0.03 per share and is set to raise around $1.53 million, excluding expenses.
Shareholders can avail themselves of this opportunity at a 30% discount to the 30-day volume-weighted average price (VWAP) of $0.043 per share and an even more competitive 60% discount to the 90-day VWAP of $0.075.
Every two shares subscribed under the offer will come with one free option, anticipated to be listed. These options will be exercisable at $0.075 each on or before November 20, 2025, adding an additional layer of value for participants.
Lead manager and underwriter Mahe Capital Pty Ltd has underwritten a portion of the entitlement issue, committing up to $750,000 to demonstrate their confidence in the company's prospects.
As of October 25, shareholders will have the option to trade their rights and apply for additional shares and options.
Forrestania Resources is actively promoting this offer, with the company's board of directors showing strong support by committing to subscribe for entitlements totalling $105,000.
"The right things in the right areas"
The funds raised through this initiative will primarily be allocated to advancing exploration programs, specifically focusing on testing priority lithium and copper drill targets at the company's Forrestania and Eastern Goldfields projects in WA.
Managing director Michael Anderson said: “The team has continued our systematic exploration of the Forrestania Project delivering a number of positive outcomes including drilling ore grade lithium mineralisation and visible spodumene at both the Giant and South Iron Cap East projects and locating stacked pegmatite systems at Calypso in proximity to known mineralisation.
“Given we are on the doorstep of the world-class Mt Holland lithium deposit, and significant gold and nickel mines, we remain confident that we are doing the right things in the right areas, and there is plenty more still to do as we aim to unlock the discovery potential in this highly prospective belt.
“In addition, since expanding the footprint of the Eastern Goldfields Project, we have generated numerous new targets for both lithium and copper that these funds will allow us to drill.
“As always, we intend to be proactive and focused in undertaking our work across the portfolio on these priority targets and shareholders can expect further significant news flow in the coming months.”