PERTH (miningweekly.com) – Gold hopeful Anova Metals has announced a revision to its earlier entitlement offer as part of its efforts to raise A$6.9-million.

The company at the beginning of March announced an entitlement offer of one new share for every two shares held, priced at 1c a share, to raise A$3.4-million.

However, Anova on Tuesday revised the entitlement offer to two new shares for every three shares held, priced at 0.7c a share, to raise up to A$3.2-million.

The company told shareholders that the revised pricing provided an incentive to eligible shareholders to participate in the entitlement offer, and was consistent with the significantly changed market conditions since the launch of the initial offer.

On completion of the entitlement offer, Anova will also place some 21.4-million new shares, at nil consideration, to investors that participated in the placement announced at the end of February, with the nil pricing ensuring that the effective price of the shares issued to these investors was 0.7c, in order to be aligned with the revised entitlement offer issue price.

Some 4.3-million new shares will be issued to Anova MD Dr Mingyan Wang, subject to shareholder approval.

In addition to the placement, Anova has also received conditional commitment for a share placement to a cornerstone investor, which will give the investor a 30% interest in the company. This placement will be priced at 1c a share and will be subject to the necessary regulatory and shareholder approvals. This placement is expected to raise some A$1.7-million.

In addition to the share placements, Anova has also entered into a revised loan facility term sheet with lender Xingoa for A$2-million, subject to the execution of formal documentation. The loan will have a maturity date of March 2023, and will have a 9% a year interest rate, payable on the repayment of the loan.

The funds raised under the entitlement offer and the follow-on placement will be used to evaluate Anova’s existing projects, and to identify new opportunities, while also paying some A$1-million of duty to the Office of State Revenue for the stamp duty on the acquisition of Exterra Resources, and the repayment of the Twynam loan.