Surefire Resources NL (ASX:SRN) is beefing up its exploration war chest by raising up to $4.6 million through a share placement to sophisticated and professional investors and a non-renounceable entitlement offer to eligible shareholders.
Funds raised will be used to advance the ASX-lister’s Victory Bore Project, including a study into the potential production of high purity alumina (HPA) from the project’s waste and host rock as well as the company's other Western Australian projects.
The Perth-based mineral exploration company has received firm commitments from sophisticated and professional investors to raise up to $2 million, before costs, through the issue of up to 181 million shares at an issue price of $0.011 each.
The new shares will come with one free attaching option, exercisable at $0.019 each and expiring on November 30, 2026.
For existing shareholders too
Additionally, the company will undertake a pro-rata non-renounceable entitlement offer of one fully paid new share for every eight shares held by eligible shareholders at an issue price of $0.011 each to raise up to $2.6 million.
As well, the new shares come with one free attaching option on the same terms as those offered to the sophisticated and professional investors.
A total of up to 238 million new shares and 238 million new options are expected to be issued under the entitlement offer to shareholders on record as of November 13 and with registered addresses in Australia or New Zealand.
The new options will be quoted on the ASX, subject to listing rules.
The entitlement offer includes a top-up facility to cushion shortfalls between applications received from eligible shareholders and the number of new shares proposed to be issued.
About the company
Surefire holds mineral exploration licences over a variety of resources in Western Australia.
Its current focus is on the Victory Bore vanadium critical and battery minerals project, which is located close to existing infrastructure and currently in pre-feasibility stage.
In addition, its large high-grade iron and gold projects have the potential to add considerable value to the company.