With firm commitments to raise $4.1 million in a highly sought-after placement, Nexus Minerals Ltd (ASX:NXM) is putting itself in a strong position to advance its Wallbrook Gold Project in the north-eastern Goldfields of WA.
Following the raise, the company will have cash of around $7.2 million to go towards ongoing aircore, reverse circulation and diamond drilling, as well as geophysical surveys, general exploration activities and mine studies at Wallbrook.
Funds raised will also support minimum expenditure requirements at the Pinnacles Gold Project and its NSW and Victorian projects.
Just a week ago, the company reported early regional exploration success at Wallbrook, receiving broad, high-grade near-surface assays demonstrating strong growth opportunities.
“The proceeds from the placement will allow Nexus to continue with its regional exploration programs at the Wallbrook Gold Project, where the company has been having continued exploration success.
"The exploration efforts will complement the current Crusader-Templar resource base, with the exploration strategy seeing aircore drilling of new target areas commencing in the coming weeks,” NXM managing director Andy Tudor said.
About the raise
As noted, the company has received firm commitments for a placement of new fully paid ordinary shares to raise $4.1 million before costs. Demand was in excess of funds sought.
“It is a great result to have received such a positive outcome and strong support from existing and new shareholders, also a strong endorsement of the company’s Wallbrook Gold Project endeavours,” Tudor said.
The placement price of $0.042 per new share represents a 2.4% premium to the last traded price of NXM’s shares and an 8.8% discount to the 15-day VWAP (issue price).
The placement will result in the issue of some 97.3 million new shares in the company.
Showing their confidence in the project, directors of the company have committed to subscribe for 1.7 million new shares subject to shareholder approval to be sought at the upcoming Annual General Meeting to be held before the end of November.