PERTH (miningweekly.com) – ASX-listed Flinders Mines is hoping to raise A$5.5-million through a non-renounceable entitlement offer, priced at 1.3c a share.
The entitlement offer will comprise some 425.8-million shares, and will be offered on the basis of one new share for every nine existing shares held.
Flinders on Friday pointed out that the offer price represented a 47.6% discount to the company’s ten-day volume weighted average share price for the period ended March.
Funds raised under the entitlement offer will be used to repay the balance of a A$7-million unsecured loan from PIO Mines, which amounts to some A$1.5-million along with accrued interest, as well as the cost of the offer and working capital.
The loan from PIO, which is a subsidiary of shareholder TIO, was previously due at the end of April, but the repayment date has been extended until the end of June.