C29 Metals (ASX:C29) has successfully completed a capital raising initiative through a placement of 7,000,000 fully paid ordinary shares at 7.5 cents per share, raising A$525,000 before costs to bolster the Company’s efforts in advancing its key projects.
The Company has secured commitments from a range of investors, including sophisticated, professional, and exempt investors, for the issuance of 7,000,000 ordinary shares. These shares will rank equally with the existing C29 ordinary shares traded on the Australian Securities Exchange (ASX), and issuance is expected around September 25, 2023.
Notably, the Placement shares were offered at a price of 7.5 cents per share, representing a strategic 16.7% discount to the last traded price, aimed at incentivising investor participation and maximising the capital raised.
The Company has appointed ARQ Capital Pty Ltd as the Lead Manager for this Placement, with ARQ Capital set to receive a fee of 6% across all funds raised, along with a $10,000 management fee.
Utilisation of Proceeds
The net proceeds generated from this Placement will play a pivotal role in advancing the Company’s strategic initiatives. The primary allocation of funds will be directed towards the maiden drill program of the Mayfield Project located in Mt Isa, Queensland, Australia, with this project holding significant promise in terms of mineral resources and exploration potential.
Additionally, the capital raised will support ongoing efforts related to the NSW Sampsons Tank copper project and other key projects in the C29 Metals Limited portfolio, enabling the Company to continue exploration, development, and expansion activities.
C29’s Australian Stock Exchange-listed is currently selling at 7.4c (10.45am UTC+ 8 hours).