Nelson Resources Ltd (ASX:NES) has accepted binding commitments for a placement of 28,700,535 new shares at an issue price of 7.5 cents per share to raise $2.15 million for advancing its exploration projects.
The placement was significantly oversubscribed through Merchant Capital Partners (MCP) and well supported by existing and new investors.
MCP will receive a management fee of 2% of the total amount raised under the placement and a placement fee of 4% of the funds it raises, and subject to shareholder approval MCP will also receive one option for every dollar raised.
The options will have an exercise price of 11.25 cents and expire 3 years from the date of issue. further placement details.
“Strong support testament to projects potential”
Nelson executive director and CEO Adam Schofield said: “The strong support for this Placement is a testament to the significant potential of both the Woodline and Tempest projects.
“We look forward to completing the current 1500 metres diamond drilling program and the soon to commence 6000 metres RC drill program.
“Looking forward from our current programs this capital raising solidifies our ability to deliver significant future geophysics/drilling programs and results in the next 12-18 months”.
Placement funds
Proceeds from the placement will be used to:
- Fund 12-18 months of additional geophysics and drilling at the Woodline project beyond the current work programs;
- Fund initial Geophysics and drilling at the Tempest project which hosts both Gold and Nickel potential; and
- Maintain a strong balance sheet.
Placement details
The shares issued under the Placement will fall within the company’s 15% placement capacity under ASX Listing Rule 7.1 and additional 10% placement capacity under ASX Listing Rule 7.1A.
The company will issue 17,220,321 shares pursuant to Listing Rule 7.1 and another 11,480,214 shares will be issued pursuant to Listing Rule 7.1A.
The settlement of shares issued under the placement is scheduled to occur on Friday, 29 January 2021.