Nexus Minerals Ltd (ASX:NXM) has added A$19 million to its balance sheet, thanks to strong support from institutional, sophisticated and professional investors.
The placement of around 41.3 million shares at an issue price of A$0.46 per share – a 3.1% discount on the five-day VWAP and an 8% discount on the company’s last traded price – was quickly snapped up. Settlement is scheduled for November 22.
“To have achieved such a strong level of institutional and sophisticated investor support for the placement was very encouraging and a strong endorsement of our endeavours,” managing director Andy Tudor said.
Proceeds of the placement will allow the company to ramp up drilling at the Crusader-Templar prospect, and fund regional exploration activities at the wider Wallbrook Gold Project.
Consolidation at Wallbrook
Nexus is prospecting for gold deposits in the Eastern Goldfields of Western Australia.
Consolidation of the 250 square kilometres Wallbrook site with adjacent sites is expected to propel these efforts.
The company’s tenement package at the Pinnacles Gold Project is along strike from Northern Star’s Carosue Dam mining operations and the Karari and Whirling Dervish underground gold mines.
Nexus will prospect across these substantial land holdings, which include highly prospective geological terrain along a major regional structural corridor.
Interstate prospects
It also recently expanded its existing portfolio with the option to purchase the Bethanga Porphyry Copper-Gold Project in Victoria.
Proceeds of the placement will fund new exploration techniques to refine the targeting approach for current and future tenements.