Yandal Resources Ltd (ASX:YRL) has kicked off a capital raising initiative with a strongly supported share placement to new and existing institutional and sophisticated investors to raise $2.3 million as well as non-renounceable rights issue to raise about $2.7 million for a total of $5 million.
Directors of the company also intend to take up their full entitlements under the rights issue, with the funds to be focused primarily on resource expansion drilling at the Mt McClure Gold Project, as well as follow-up exploration activities on high-potential prospects.
Participants in the placement component will receive one free attaching unquoted option at an exercise price of $0.24 and an expiry of October 31, 2024, for every two shares subscribed for.
MST Financial Services Pty Ltd acted as sole lead manager for the placement, which was oversubscribed.
Non-renounceable rights issue
The non-renounceable rights issue taking place in parallel with the share placement offers eligible shareholders a 1 for 5.15 rights issue at $0.12 a share.
For every two new shares subscribed for under the rights issue, Yandal is also offering 1 free attached new option under the same terms of the share placement options.
The rights issue will open on October 21 and close on November 4, 2022, unless extended in accordance with ASX rules.
YRL has so far received firm commitments from existing shareholders to subscribe for a total of just under $1.2 million, while MST Financial Services Pty Ltd has partially underwritten the rights issue to the tune of just over $1.5 million.