Alice Queen Ltd (ASX:AQX) has received binding commitments to raise $1.47 million via a strongly supported private placement at $0.011 per share.
The offer was significantly over-subscribed, with strong support received from major shareholder Chris Morris along with several existing shareholders and some new institutional and sophisticated investors.
Notably, the funds will be used to finalise the Horn Island Gold Project Scoping Study, accelerate exploration activities at Horn Island and provide working capital flexibility.
“Accelerate further exploration”
Alice Queen managing director Andrew Buxton said: “As the Horn Island Scoping Study nears completion, we are pleased to have completed a capital raise that will allow us to accelerate further exploration at Horn Island.
“With the Scoping Study on track to be delivered in October 2021, it is exciting to be concurrently recommencing exploration there.
“In the background, it is reassuring to have received widespread support for this raise, including a significant investment from our largest shareholder, Chris Morris.
“We wish to thank all of the participants in this placement, both existing and new, for their support.”
Placement details
The placement will result in the issue of 133,636,365 shares at $0.011 per share reflecting a 20.4% discount to the last close price of $0.014 and a 20.4% discount to the 15-day volume-weighted average price (VWAP).
For every two shares subscribed in the placement, the company intends to issue an option, with an exercise price of $0.03 and maturity of two years from the date of issue, subject to shareholder approval at the next general meeting of the company.
The placement shares will rank equally with existing shares on issue and are expected to be allotted on September 3, 2021, and will be issued without shareholder approval under the company’s remaining placement capacity.
Alice Queen engaged Henslow Pty Ltd as lead manager to the placement.
- Ephrems Joseph