PERTH (miningweekly.com) – Explorer Marindi Metals will raise A$2.5-million through a share placement, convertible note deed and an entitlement offer to fund exploration programmes at its Forrestania gold and lithium projects, in Western Australia.
The initial fundraising will consist of the placement of 116-million shares, at 1c each, and the issuance of a convertible note with a face value of between A$200 000 and A$300 000, before costs.
The convertible note will have a maturity date of four months from the date of issue, and a conversion price of 1c a share.
The share placement will be followed by a non-renounceable entitlement offer, under which more than 2.2-billion shares will be placed to eligible shareholders, at a price of 1c each, to raise A$2.2-million.
The entitlement offer will close on August 9.
Marindi on Wednesday said that the placement price represented a 50% discount to the company’s last closing price on July 5.
Funds raised will be used to accelerate the next phase of gold-focused exploration activities at Forrestania, and to progress a number of strategies currently under way at Marindi’s other mineral projects, as well as for general working capital.
Meanwhile, Marindi on Wednesday also announced that it would be seeking shareholder approval for a sixty-for-one share consolidation. A general meeting will be held in the second half of August, to allow shareholders to vote on this consolidation.
The proposed consolidation will take place after the share placement and entitlement offer.