Nelson Resources Ltd (ASX:NES) has raised $2 million in an oversubscribed renounceable rights issue and is encouraged by strong support from shareholders and new sophisticated and institutional investors.
To accommodate a portion of the excess demand, the company has agreed to undertake a placement to raise an additional $341,000 on the same terms as the rights issue.
Funds will be used to complete current drilling programs at its Woodline and Tempest projects in WA and expand exploration.
Follow-on placement
Following completion of the follow-on placement, the total amount raised will be almost $2.3 million, before costs.
Nelson Resources will issue a total of 48,819,088 new fully paid ordinary shares and 24,409,544 new options exercisable at $0.08.,
The options will have an expiry date of August 17, 2023, and will be quoted under the ASX code NESO.
Welcomes new shareholders
Mahe Capital Pty Ltd advised Nelson on the rights issue and acted as lead manager and underwriter to the capital raising.
Nelson would like to thank its shareholders for their support and welcomes new shareholders, including institutional shareholders introduced by Mahe Capital to the register.
The new securities are expected to be issued on Tuesday, August 17 and will be trading on a normal basis from Wednesday, August 18.
Final allocations