Moho Resources Ltd (ASX:MOH) has received firm commitments for $2.5 million through a well-supported placement at an issue price of 9 cents per share.
The bookbuild was oversubscribed with strong demand from sophisticated and professional investors with Euroz Hartleys Limited acting as lead manager.
Moho managing director Shane Sadleir said: “Moho is delighted with the positive market response to our capital raising and appreciates the valuable support provided by Euroz Hartleys in achieving this in such a short time.”
Funding exploration
Proceeds will be applied towards:
- Progressing East Sampson Dam Gold Prospect through scoping study with the company considering early development potential via toll treatment arrangements;
- Reverse circulation (RC) drilling (3,800 metres) at East Sampson Dam;
- Aircore drilling along strike of the East Sampson Dam prospect;
- Diamond drilling (600 metres) and RC drilling (2,500 metres) at the Burracoppin Gold Project; and
- General working capital purposes.
Placement details
A total of 28,111,116 new fully paid ordinary shares will be issued with the allotment of the first part of the placement (tranche-1) for up to 18,736,633 shares (around $1.69 million) not subject to shareholder approval.
The settlement of tranche-1 is expected on or around Friday, December 18, 2020.
Tranche-2 for up to 9,374,483 shares (about $840,000) will be issued subject to shareholder approval at a meeting of shareholders scheduled to take place on or around Thursday, February 4, 2021.
Moho will issue one attaching unlisted option for every two placement shares issued, subject to shareholder approval, with the options exercisable at 12 cents with an expiry date 3 years from issue date.