PERTH (miningweekly.com) – Junior explorer Austin Exploration has welcomed UK institutional investor Lanstead Capital as a cornerstone investor, after the company took a 19.8% shareholding in ASX-listed Austin, valued at A$4.5-million.
Lanstead would subscribe for 59-million new ordinary shares, at a price of 7.65c each.
Austin told shareholders on Wednesday that securing Lanstead as an investor was an important development for the company, adding that the proceeds raised would enable Austin to continue its drilling programme at its North American properties.
“We have worked diligently with Lanstead to structure a finance package that meets our upcoming drilling commitments and allows for additional funding and growth to occur as we bring more wells on line and substantially ramp-up production,” said Austin CEO and MD Mark Hart.
Austin has been on the hunt for a cornerstone investor for the past three years, and was looking to transition into a production company, with more than 300 possible drilling locations identified.
Meanwhile, the company has cancelled plans for a proposed debt programme, saying instead that it would work on a longer term, larger financing arrangement that would deliver better outcomes for shareholders.