WA1 Resources Ltd (ASX: WA1) has received firm commitments for a placement of new ordinary shares to raise A$15M before costs.
The placement price of A$5.00 per share represents a 5% discount to the 10-day VWAP of WA1 shares and will result in the issue of 3M new shares in two tranches, and the company having approximately 56.7M shares on issue.
Tranche 1 will be issued pursuant to the company’s existing placement capacity under ASX Listing Rule 7.1 and 7.1A, raising A$12.8M before costs, resulting in the issue of approximately 2.6 million new shares.
Tranche 2, which is subject to WA1 shareholder approval, will raise an additional A$2.2M before costs from the issue of 0.4M new shares. WA1 will convene a general meeting to approve Tranche 2 of the placement, which is expected to be held early October 2023.
Funds raised from the placement will primarily be applied towards ongoing exploration activities and development studies at the West Arunta Project, along with administration/corporate costs and general working capital.
WA1’s managing director, Paul Savich, commented, “We continue to have two drill rigs operating at Luni which are completing ongoing infill and step-out drilling in support of the maiden mineral resource estimate planned for release in the first half of 2024. Development activities are also gathering momentum with initial sighter test work ongoing before upcoming metallurgical programs commence.”
“Our team has also continued to grow to support a number of development activities in line with our long-term, structured approach to fast-tracking project development aspects, and this additional funding enhances our ability to do so.”
To find out more, please visit www.wa1.com.au
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