Premier1 Lithium Ltd (ASX:PLC) advises that it is seeking to raise $1.5 million to advance exploration at Yalgoo and Abbotts North projects.
The company has already received binding commitments to raise around $209,000 via a placement at $0.008 per share to sophisticated and professional investors, and has now launched an entitlement offer to raise a further $1.3 million.
The placement and entitlement offer will raise gross proceeds of around $1.5 million with the proceeds to be used for geophysics, geochemistry, drilling and heritage at the company’s Yalgoo and Abbotts North projects, along with corporate costs and general working capital.
Premier1 Lithium managing director Jason Froud said: “Both the placement and underwriting for the entitlement offer have been well supported demonstrating the strong backing for the company’s proposed exploration activities at Yalgoo and Abbotts North.
“The support received ensures that the company is well funded to continue its exploration program and to drill test a number of gold targets early next year.
“The Yalgoo project is a key focus for Premier1. Historical exploration is primarily limited to shallow drilling and identified extensive high-grade gold mineralisation. This mineralisation remains largely untested at depth and along strike and we are excited about the exploration potential here.”
Entitlement offer
The company seeks to raise around $1.3 million via a five-for-six non-renounceable pro-rata entitlement offer, which will be fully underwritten by Canaccord Genuity (TSX:CF, LSE:CF). Up to 167.3 million new fully paid ordinary shares will be issued under the entitlement offer, also at an issue price of $0.008 per share.
Participants in the placement and entitlement offer will receive one free attaching option for every three placement or entitlement shares subscribed for, exercisable at $0.016, which will expire three years from the date of issue.