Aeris Resources Ltd (ASX:AIS) has raised $28.4 million through a combined placement and institutional accelerated rights issue offering shares priced at 20 cents.
Furthermore, the retail component of the rights issue which is fully underwritten will open this Friday and seeks to raise an additional $6.7 million.
Aeris’ executive chairman Andre Labuschagne said: “This has been an excellent result. The company had strong demand from new and existing investors for the institutional component of the entitlement offer and the placement.
“Proceeds of the equity raising will be used for debt reduction and accelerating exploration activities at Tritton and Torrens.”
READ: Aeris Resources ready to drill massive Olympic Dam style target
The placement component raised $8.4 million through the issue of 42 million shares priced at 20 cents to sophisticated and institutional investors.
The institutional component of the 1-for-2.1 rights issue raised $20 million including $7 million from the company’s largest shareholder, Special Portfolio Opportunity V Limited.
Funding copper operations and exploration
Funding will be used to accelerate the exploration programs at the 100% owned Tritton Copper Operations in New South Wales and the 70% owned Torrens Joint Venture in South Australia.
Torrens is a coincident magnetic and gravity anomaly with a footprint considerably larger than that of the world-class Olympic Dam deposit – drilling aims to commence June half 2019.
Aeris achieved copper production for the June quarter of 7,592 tonnes, an 11% increase on the previous quarter and the best quarter for FY2018 at its Tritton Copper Operations.
Funding will be used to accelerate the drilling program at the Kurrajong prospect following exceptional results in FY18 and for brownfield exploration at the Tritton Mine.
Aerial and ground electromagnetic programs are also planned over the northern half of the Tritton tenement package.