Xantippe Resources Ltd (ASX:XTC, OTC:XTCPF) has kicked off a capital raising exercise for up to $20 million strongly with firm commitments received to raise approximately $12 million in a placement and a share purchase plan (SPP) launched for up to $8 million.
These funds are intended to support exploration efforts on the company’s assets in Argentina and at Southern Cross in Western Australia.
XTC has received firm commitments from institutional and sophisticated investors for the placement with related parties subscribing for $2.7 million – subject to shareholder approval.
The company is offering shares at $0.06 cents each, representing a 6.25% discount to the 5-day volume-weighted average price (VWAP) of $0.064 per share.
This offering includes conditional attaching options on a 1-for-2 basis exercisable at 1.5 cents expiring on June 10, 2024.
Driving long-term value
“We are very pleased to have received commitments to this $12 million placement from those participating and welcome those new shareholders to our register,” Xantippe Resources executive chair John Featherby said.
“We believe these additional funds will drive long-term shareholder value.
“It is also with pleasure that we announce the proposed share purchase plan, which will provide an opportunity for our shareholder base to participate in the growth of the company on the same price and terms as the placement.”
Roth Capital Partners LLC and Evolution Capital Pty Ltd acted as lead managers to the placement.
SPP details
Shares will also be offered at the same price to existing shareholders under the SPP, with up to $30,000 worth of shares per shareholder on offer at 0.6 cents per share. The SPP includes two option shares for each ordinary share subscribed for.
These attaching share options will be exercisable at $0.015 and expire on June 10, 2024.
The record date for participation in the SPP was Tuesday, December 6, 2022, and registered holders of shares at that date with a registered address in Australia, New Zealand or such jurisdiction that the directors may determine, are eligible to participate in the SPP.
This SPP offer period is expected to open on Thursday, December 15, 2022, and is expected to close at 5:00pm (AEDT) Thursday, January 19, 2023.
Proceeds from the capital raise will go toward expanding exploration efforts on the company’s lithium brine tenements in Argentina and evaluating its Southern Cross Project in Western Australia for lithium potential.