Twenty Seven Co Ltd (ASX:TSC) (FRA:U9V) has launched a partially-underwritten pro-rata renounceable rights issue at $0.005 per share to raise up to $2.65 million before costs.
Under the offer, shareholders will be offered one new fully paid ordinary share for every four existing shares held on 16 April 2021, with one attaching listed option, exercisable at $0.009 and expiring on October 31, 2023, for every two new shares subscribed.
The company has entered into an underwriting agreement with Mahe Capital to partially underwrite the rights issue, to the value of $1.5 million.
“Funding future exploration work”
TSC chief executive officer Simon Phillips said: “TSC is pleased to announce funding for the next level of work across its expansive suite of exploration projects.
“The board is pleased to be working with Mahe Capital as adviser, lead manager and underwriter in securing funding for the advancement of work programs throughout the entire project portfolio.
“TSC’s board and management are excited for the opportunities that this funding will bring to shareholders through maximisation of its current and future exploration and mining activities.”
Current and planned activities
On successful completion of the offer, the company will be well-funded, with up to $3.5 million available to:
- Assess exploration and mining opportunities at its Mt Dimer mining lease after a recent successful exploration campaign;
- Progress further exploration on the Mt Dimer exploration lease, adjacent to its Mt Dimer mining lease (currently underway);
- Mobilise a crew to commence geochemical soil testing programs on its 220 square kilometres, underexplored Marda Greenstone ground at Yarbu;
- Fast-track the next program of work on the Rover Project, including follow-up work on the project’s best soil results to date at Blue Hills, Four Corners and Middle Well;
- Progress opportunities to maximise value from its highly prospective NSW IOCG projects; and
- Use for working capital purposes generally.
Indicative dates in respect of the capital raising.
Indicative timeline
The rights issue will close on May 5, 2021 (unless extended), and eligible shareholders can apply for shortfall in excess of their entitlement.
Shareholders can also trade their rights from April 21, 2021.
All new shares issued will rank equally with existing shares on issue and the company will apply for quotation of the new shares and options.
A prospectus will be lodged with ASIC on April 12, 2021 and, together with a personalised entitlement acceptance form, will be sent to eligible shareholders shortly after the record date.