Azure Minerals (ASX:AZS) have received firm commitments to raise $120 million through a two-tranche placement for the issue of 50 million new fully-paid ordinary shares at an offer price of $2.40 per New Share.
Tranche 1 of the Placement aims to raise approximately $100 million and is set to occur on the 28th August next week.
Tranche 2 of the Placement, which includes the issue of New Shares subject to shareholder approval, is set to raise approximately $20 million and will be issued after settlement during the Extraordinary General Meeting in October this year.
Following the settlement of the New Share price or ‘placement,’ Azure will be well capitalised, with the Company reporting a pro forma 30 June 2023 cash balance of $137 million before costs.
The Company announced it is in a strong financial position to accelerate exploration and drilling at Andover, as it works towards a maiden lithium Mineral Resource by the first quarter of 2024.
Figure 1: Azure’s Lithium and Nickel-Copper-Cobalt Project
The Andover Project is 70km2 located in the West Pilbara region of Western Australia, and has successfully discovered several significant bodies of nickel, copper and cobalt sulphide mineralisation.
In addition to the two-tranche placement, eligible shareholders will be invited to apply for up to $30,000 worth of new ordinary shares under the Share Purchase Plan, with this aiming to raise an additional $10M.
Azure’s Managing Director Tony Rovira said, “The strong support shown from both new and existing institutional investors in this Placement is testament to Andover as one of the best lithium exploration projects globally.”
“We look forward to further delineating the potential scale of this exciting discovery.”
“On behalf of the Azure Board and management, I wish a warm welcome to our new shareholders and thank all our existing shareholders for their long-standing support.”
AZS’s Australian Stock Exchange-listed share price has risen 4.744% and is currently trading at $2.87 (2.35pm UTC+ 8 hours).