Forrestania Resources Ltd (ASX:FRS) has successfully concluded its entitlement offer, which was oversubscribed, marking a significant achievement for the company with more than $1.78 million to be raised.
The company says the offer, made in line with the company’s prospectus issued on October 23, has garnered substantial interest from eligible shareholders.
It was extended at the rate of one new fully paid ordinary share for every two shares held on the record date, priced at A$0.03 per share.
Additionally, for every two new shares issued, shareholders received one free option expiring on or before November 20, 2025, with an exercise price of A$0.075 each. They will be traded on the Australian Securities Exchange (ASX) under the ASX code FRSOB.
Follow-on placement
Encouraged by the strong interest from shareholders and investors who applied for additional shares, the company has agreed to undertake a follow-on placement, aiming to raise an additional $250,000 under the same terms as the rights issue.
When the follow-on placement is all wrapped up, the total funds raised are expected to reach $1,784,524 before costs.
Forrestania will issue a total of 59,484,133 new fully paid ordinary shares and 29,742,067 new options. This follow-on placement will be carried out under the prospectus and a supplementary prospectus that the company will submit.
The net proceeds from this successful capital-raising effort will be directed towards advancing exploration programs and testing priority lithium and copper drill targets at the company's Forrestania and Eastern Goldfields projects in Western Australia.
Mahe Capital Pty Ltd served as the lead manager and underwriter for the rights issue, providing advisory support to the company during the capital raising process.
The issuance of the new securities is scheduled for November 17, 2023, in accordance with the prospectus timetable.
About Forrestania Resources
Forrestania Resources is an Australian exploration company dedicated to uncovering valuable mineral resources, with a primary focus on lithium, gold and nickel exploration across various regions in Western Australia.
Its flagship asset is the Forrestania Project, positioned in the prolific southern Forrestania Greenstone Belt and spanning some 100 kilometres from north to south. This project exhibits substantial potential for lithium, gold, and nickel resources.
The company also boasts the Southern Cross Project, prospective for gold, the Eastern Goldfields Project and the Hydra Lithium Project, in which it holds a 50% holding.
Forrestania's ventures extend into the James Bay region of Quebec, Canada, where it is in pursuit of lithium.