PolarX Ltd (ASX:PXX) is raising up to $2.88 million at 0.8 cents per share to fund drilling at its Humboldt Range Gold Project in Nevada.
The 2 for 5 renounceable rights issue price represents a discount of:
- 11% to the company’s last close of 0.9 cents on the ASX; and
- 24% to the company’s 60-day VWAP of 1.1 cents.
In a show of faith in the project, executive chairman Mark Bojanjac and managing director Jason Berton have agreed to subscribe for their full entitlement under the entitlement offer.
Shareholders can trade their rights and apply for additional shares via a shortfall offer. The rights will start trading from October 31, 2022.
Use of funds
Funds will go towards:
- Exploration and development activities at the Humboldt Range Project in the USA, including the proposed drilling program that is expected to commence in late November 2022.
- Exploration and development activities at the Alaska Range Project in the USA.
- For general working capital.
- To pay the costs of the entitlement offer.
Mahe Capital Pty Ltd is the lead manager to the entitlement offer and shortfall offer.