PERTH (miningweekly.com) – ASX-listed Pacific Bauxite will raise up to A$3.5-million to fund the acceleration of bauxite exploration at its Nendo and South West New Georgia projects, in the Solomon Islands.
The company said on Friday that A$2.5-million would be raised through an oversubscribed share placement, with Pacific Bauxite expected to issue more than 86.2-million shares, at a price of 2.9c each.
Every two shares would be issued with one free attaching option, which could be exercised at 6c each within three years of issue.
The share placement would be completed in two tranches, with the first tranche comprising 42.3-million shares, and would be issued under the company’s existing placement capacity. The second tranche of 14.9-million shares would be placed subject to shareholder approval.
In addition to the share placement, Pacific Bauxite would also conduct a share purchase plan, allowing existing shareholders to subscribe for some A$1-million worth of new shares.
“The support we have received for the placement is very encouraging,” said Pacific Bauxite nonexecutive chairperson, John Ciganek.
“We have strong belief in the potential of our projects to host significant bauxite orebodies, and look forward to unlocking their significant potential in the coming months.”
Funds raised would be used to accelerate exploration at the Solomon Island projects, as well as resource estimation work and for general working capital.
Exploration at Nendo is currently under way, with work targeting higher grade zones of bauxite mineralisation identified in the previous phase of exploration.