Vango Mining Ltd (AXS:VAN) is well-positioned to further advance its 100%-owned Marymia Gold Project in Western Australia after raising A$6.1 million in an equity raising to sophisticated and professional investors.
The oversubscribed raising includes two components:
- 62.8 million fully paid ordinary shares at A$0.065 per new share with unrelated investors to raise approximately A$4.1 million; and
- 30.8 million new shares at A$0.065 per share with related investors to raise approximately A$2.0 million.
Placement oversubscribed
Vango’s executive chairman Bruce McInnes said: “I am pleased the placement is oversubscribed, with investors showing their confidence in the company’s future performance.”
The company has also received agreement from unrelated contractors to convert A$200,000 payable by the company to equity on the same terms, by issuing approximately 3.1 million new shares at A$0.065 per share.
Use of funds
Funds raised through the placement will be used for planned exploration and development of the company’s 100%- owned Marymia Gold Project in the Mid-West region of Western Australia including working capital.
Blue Ocean Equities acted as lead manager to the capital raising.
Placement details
New shares to related investors are expected to be issued and start trading within one month of receiving approval from members.
The new shares to unrelated parties will be issued:
- For cash, as soon as practicable under the company’s available capacity pursuant to ASX Listing Rule 7.1A; and
- For contractor services, as soon as practicable under the company’s available capacity according to ASX Listing Rule 7.1.
Under listing rule 7.1A, the company plans to issue 62.8 million new shares from a capacity of 103.1 million equity shares and under listing rule 7.1, 3.1 million shares will be issued from a capacity of 152.3 million shares.
Shares to be issued to unrelated investors are expected to start trading on the ASX by June 16, 2021.
The despatch of holding statements to unrelated investors is expected to occur by June 18, 2021, and shareholders who want to trade new shares issued to them before receiving their holding statement should confirm their allocation before doing so.