- Spartan Resources (ASX:SPR) secures commitments to raise $25 million through a placement to institutional investors
- This placement involves issuing 62.5 million new Spartan shares at an offer price of 40 cents each
- The funds will go towards exploration, studies, corporate costs and general working capital
- The new shares are set to be issued on November 24
- SPR last traded at 39 cents
Spartan Resources (ASX:SPR) has secured firm commitments to raise $25 million through a placement to institutional investors.
This placement involves issuing 62.5 million new Spartan shares at an offer price of 40 cents each, representing a three per cent premium over the last closing price of 39 cents per share.
The funds generated from the placement, in conjunction with the company’s available cash balance, will be used for exploration, studies, corporate costs, and general working capital.
“The proceeds… will put Spartan in an outstanding position to capitalise on what has been an exceptional year for the company in 2023 and significantly upscale our exploration and resource drilling efforts in the first half of 2024,” SPR Managing Director and CEO Simon Lawson said.
“The funds raised will be earmarked to delivering resource growth above the scheduled MRE update in December 2023, targeting the next leg of resource growth at Dalgaranga and ensuring we can maintain our current exploration momentum.”
The new shares are set to be issued on Friday, November 24, and will hold an equivalent rank with existing Spartan shares.
SPR last traded at 39 cents.