Volt Resources Ltd (ASX:VRC) aims to raise at least $1.1 million in capital through an underwritten share purchase plan (SPP) which is to open tomorrow, 23 July, 2019.
The plan will be underwritten to $1.1 million by Patersons Securities Limited, acting as lead manager and underwriter to the SPP.
READ: Volt Resources secures US$1 million to progress Bunyu stage-one development funding process
Volt chief executive officer Trevor Matthews said the company continued to make solid progress towards securing the funding required to complete stage-one development of its Bunyu Graphite Project.
He added it was an important step to ensure the company “has an appropriate capital structure which includes the prepayment of short-term debt.”
New shares will be issued at a 20% discount to the volume weighted average price traded on the ASX during the five days immediately prior to the day new shares are issued.
The company has also agreed that Patersons may facilitate an offer of new shares to sophisticated and professional investors to raise a further $1.1 million in a top-up placement.
Eligible shareholders will be able to purchase parcels of new shares valued at $1,000; $2,500; $5,000; $7,500; $10,000; and $15,000, with new shares ranking equally with existing Volt shares.
Volt will update shareholders on whether the top-up placement will proceed.
READ: Volt Resources advances funding pathways for Bunyu stage-one development
Funds raised in the SPP and potential top-up placement will be used to repay the outstanding loan notes due to Riverfort Global Capital and Yorkville Advisors which are on September 14.
The company has reached an agreement with Riverfort and Yorkville under the debt facility restructure to cancel the issue of unlisted options worth $190,0000 in exchange for a US$31,193 payment.