Magmatic Resources Ltd (ASX:MAG) has opened its share purchase plan (SPP), having already received firm commitments for a placement of 30,206,000 fully paid ordinary shares at a price of $0.10 per share to sophisticated, institutional and professional investors, raising approximately $3 million.
The SPP is now open to eligible shareholders, who will have the opportunity to purchase up to $30,000 worth of shares at the same price as the placement, without incurring brokerage or transaction costs to raise an extra $1 million
The price represents a discount of 21.9% to $0.128 (being the volume weighted average market price (VWAP) of the shares over the last five trading days on which sales in the shares were recorded before the day on which the plan was announced.
The company intends to raise $1 million but will accept additional applications subject to shareholder demand and compliance with the ASX listing rules. It also reserves the right to scale back so that no more than $1 million is raised.
The plan will not be underwritten.
Use of funds
The total of $4 million expected to be raised from the SPP and placement will be used to fund the expansion and acceleration of the high impact drilling program at the Myall Project following strong initial results at the Corvette prospect.
It will also be used for continued exploration of other high priority targets in Magmatic’s portfolio and for general working capital.
The indicative timetable for the SPP and placements is shown below:
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