Mineral exploration company S2 Resources has raised A$7-million in a placement to international and domestic institutional and sophisticated investors to raise about A$7-million.
The placement received strong support from long-term shareholders, commented chairperson Mark Bennett.
The proceeds of the placement will be used for gold and base metal exploration at its projects in Australia, including the Greater Fosterville project, in Victoria, and the Koonenberry and Warraweena projects, in New South Wales.
“Although we could have raised more, we took the conscious decision to not issue more equity than required at this juncture, with the aim of minimising dilution and cost of capital,” said Bennett.
S2 placed 41.2-million shares at A$0.17 a new share, representing a 12.3% discount to the five-day volume weighted average price of A$0.194, and a 42% premium to the last placement price of A$0.12 in February.