Australian Gold and Copper Ltd (ASX:AGC) has received a strong vote of confidence in its NSW-focused exploration strategy on receiving firm commitments in a placement at A$0.32 per share to raise A$11 million, before costs.
The placement was strongly supported by existing and new domestic and offshore sophisticated, professional and institutional investors.
Encouragingly, a number of new, specialist resources funds have been welcomed to the company’s register.
Delin maintains 55% stake
Existing 55% shareholder Delin Mining Group Cooperation Limited has exercised its participation rights and committed to subscribe for new shares valued at $6.05 million to maintain its shareholding.
Funds raised will be used to develop the company’s portfolio of exploration assets including acceleration of drilling at the Achilles discovery of the South Cobar Project.
“Exciting time”
AGC’s managing director Glen Diemar said: “We are pleased with the interest received and welcome our new shareholders.
“This capital raising has strengthened our register at such an exciting time in AGC’s discovery timeline.
"The company is very well funded to further develop our recent discovery at Achilles.
“We look forward to receiving assays from the outstanding six RC holes and commencing our planned exploration program to expand this already significant discovery.”
About the placement
AGC will issue 34.375 million new shares at A$0.32 per share in two tranches with these shares to rank equally with existing shares in the company:
- Tranche 1 to raise $4.95 million via the issue of 15,468,750 new shares to sophisticated, professional and institutional investors; and
- Tranche 2 to raise $6.05 million via the issue of 18,906,250 shares to Delin.
Tranche 1 shares will be issued under the company’s existing capacity in line with ASX Listing Rule 7.1 and settlement of these shares will occur on Wednesday, June 5, 2024.
The Tranche 2 shares are subject to shareholder approval and will be issued following approval at an extraordinary general meeting, anticipated to be held in early July.
The issue price represents a 22.9% discount to the last closing price of AGC shares on May 27, 2024, of A$0.415 per share and an 8.8% discount to the 10-day VWAP of $0.351 up to and including May 27, 2024.
Canaccord Genuity (TSX:CF, LSE:CF) (Australia) Limited acted as lead manager to the placement.