Yandal Resources Ltd (ASX:YRL) has boosted its war chest by more than $6.87 million to fund aggressive gold exploration programs across its high-priority gold projects in Western Australia.
The company received strong support from existing shareholders for a 1 for 6 Non-Renounceable Pro-Rata Rights Issue that closed on December 16, 2021.
Shares and options
This offer entailed the issues of new shares on the basis of one new share for every six shares held at an issue price of 40 cents per share.
It also includes 8.4 million new options on the basis of one free attaching new option for every two new shares issued at an exercise price of 65 cents and an expiry date of December 31, 2022.
READ: Yandal Resources seeks up to $6.8 million in pro-rata non-renounceable rights offer
More than $4.28 million was raised in the offer with the remainder of the total of $6,872,646 being subject to shortfall provisions.
“High level of support”
Yandal Resources’ managing director Lorry Hughes said: “The board is very pleased with the high level of financial support received from existing shareholders taking up their rights to strengthen our cash balance going into 2022.
"The funds will be used to continue aggressive exploration at our high-priority brownfields gold prospects near Kalgoorlie and Wiluna in Western Australia.”
Shortfall funds
In line with the prospectus and updated share registry calculations, a total of 6,479,552 new shares for $2,591,821 and 3,239,776 attached new options are available for the company to place on a best endeavours basis within three months of the closing date.
Yandal has fielded very strong interest for the acquisition of this remaining shortfall from multiple investors and this is being finalised.
Subject to finalisation and as per the timetable for the rights issue, the issue date of the new shares and attached new options will be December 23, 2021.
The new shares will begin normal trading on ASX on December 24, 2021.
Panthea Capital Pty Ltd has been engaged to place the shortfall on a best endeavours basis.