Shree Minerals Limited (ASX:SHH) has raised $2.95 million in an oversubscribed placement with firm commitments have been received from professional and sophisticated investors.
The placement at $0.016 per share was heavily subscribed and will support the company as it continues to advance several of its key projects.
This price is a 12.8% discount to the 20-day VWAP of A$0.01834 on March 21, 2022.
Use of funds
Shree will use the funds for exploration initiatives across its highly prospective lithium and gold prospects at the Dundas Project in WA and Lachlan Fold Belt Project in NSW.
The company will also continue to pursue the re-permitting of the Nelson Bay River direct shipping iron ore project in northwest Tasmania towards a restart strategy.
Settlement of the initial placement of $2.54 million is expected to be completed on March 29, 2022, under the existing Listing Rule 7.1 capacity.
Director participation
Additionally, company directors are seeking to participate in the placement through acquiring 25.625 million shares for a total value of $410,000, which will be subject to shareholder approval.
SHH will seek approval for the placement of these 25,625,000 shares at a general meeting of shareholders in May 2022. The date of this proposed meeting will be advised, and a notice of meeting provided in due course.