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Helix Resources seeks $2.3 million from rights issue for Cobar Basin copper drilling

Published 22/04/2024, 09:15 am
© Reuters.  Helix Resources seeks $2.3 million from rights issue for Cobar Basin copper drilling

Helix Resources Ltd (ASX:HLX), an ASX-listed resources company which is ‘all-in on copper’ exploration in the prolific Cobar Basin of central NSW, has launched a renounceable rights issue to eligible shareholders to raise up to $2.3 million, before costs.

The one-for-three renounceable entitlement offer at 0.3 cents per share represents an attractive 40% discount to the last closing price of 0.5 cents with proceeds to go towards drilling for copper.

For every two new shares subscribed, eligible shareholders will also receive one free attaching new option with an exercise price of 0.6 cents and term of three years from their issue.

Underwritten to $1.5 million

Importantly, the entitlement offer is underwritten to $1.5 million by lead manager Mahe Capital and demonstrating his confidence in the company and its copper strategy, executive chair Michael Rosenstreich intends to take up all of his entitlements.

Funds raised will be used to enable Helix to undertake drill testing of around six highly ranked copper and gold targets on its Cobar tenements, planned to commence in May 2024.

“Decisive drill program”

“This fundraising enables a decisive drill program to test a series of new copper targets which is the culmination of several years’ target generation work," Helix’s chair Mike Rosenstreich said.

"Our confidence in the targeting has grown in recent months with the novel application, for this style of mineralisation, of established geophysical survey techniques highlighting unrecognised potential in the immediate vicinity of our Canbelego copper mineral resource as well as other new targets along this mineralised Rochford copper trend.”

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Issue details

A rights issue has been chosen over a placement to prioritise existing shareholders; the price represents a discount of:

  • 40% to the company’s last close of $0.005 on the ASX; and
  • 39% to the company’s 30-day VWAP of $0.0049.

The issue is open to all eligible shareholders who have a registered address within Australia, New Zealand and Singapore, and who hold shares on the record date.

It will close on Tuesday, May 14, 2024, unless extended, and eligible shareholders can apply for shortfall in excess of their entitlement. Shareholders can also trade their rights from Wednesday, April 24, 2024.

The company will apply for the quotation of the new options on the ASX, which will be subject to the company satisfying the listing rule requirements for quotation.

A prospectus in relation to the rights issue was lodged with ASIC on April 19, 2024.

Aimed at existing shareholders

"This fund-raising structure is designed to prioritise our existing shareholders and I encourage them to seriously consider this opportunity and to contact the company if they have any questions,” Rosenstreich said.

"This funding is focused on drill testing high-conviction copper targets in the well-endowed, Cobar region of NSW.

"Discovery success, via the drill bit would be a major step in the value creation journey for the company and we look forward to continued shareholder support as we advance our projects to the next level to deliver value for shareholders.”

Read more on Proactive Investors AU


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