JOHANNESBURG (miningweekly.com) – The board of ASX-listed junior explorer Archer Exploration has elected to increase the previously announced shareholder cap of $500 000 to $2.03-million, owing to the heavily oversubscribed share purchase plan (SPP) that closed on Tuesday, which saw the company receive valid applications for $2.24-million from 361 shareholders.
This was $204 644 over the maximum shareholder cap allowed under ASX listing rules, which was 30% of the company’s share capital.
Archer advised that it was increasing the cap to the maximum allowable, adding that the company would undertake a scale back of valid acceptances on a pro-rata basis.
“We are very pleased with the strong support from existing shareholders. The funds received from the SPP allow Archer to pursue our strategy of developing our advanced magnesite and graphite projects,” said Archer executive chairperson Greg English.
The company expected the new shares under the SPP to be issued on June 14, with trading to get under way on the ASX on June 15.
Archer further advised that shareholders who were allotted shares under the SPP were also entitled to apply for one free attaching unlisted option for every share allotted to them under the SPP. These options would have an exercise price of $0.12 and an expiry date of June 30.