PERTH (miningweekly.com) – ASX-listed Breaker Resources' share purchase plan (SPP) aimed at raising A$3-million opened on Friday.
The SPP forms part of a greater A$23-million capital raise announced at the end of July to grow its resource base at the Lake Roe gold project, in Western Australia.
In addition to the SPP, the capital raise also consisted of a A$20-million share placement to institutional and sophisticated investors, priced at 24c a share. The share placement will be conducted in two tranches, with the first tranche comprising more than 29-million shares, to be issued under the company’s existing placement capacity.
The second tranche of more than 44.7-million shares would be subject to shareholder approval at a meeting on September 17.
Existing shareholder Electrum will invest A$2.2-million in the share placement to maintain its 9.95% interest in Breaker.
Under the SPP, which opened on Friday, existing shareholders would be allowed to subscribe for up to A$30 000 worth of new shares in the company, also priced at 24c each.
Breaker previously told shareholders that the funds raised would be used mainly to progress drilling activities to grow the resource at Lake Roe, and to expand future development options at the 600 km2 project. Since the start of 2020, drilling has identified three large-area growth or discovery targets, which the company said provided a solid foundation to grow the current one-million-ounce openpit resource.
The SPP will close on September 9.