PERTH (miningweekly.com) – Junior Laneway Resources on Tuesday announced a fully underwritten entitlement offer aimed at raising A$7.9-million, as part of a larger A$11-million capital raise to fund exploration work and mining activities at its Agate Creek gold project, in Queensland.
The company previously raised A$3.1-million through a share placement, which had also been priced at 5c a share.
Laneway will now undertake a one-for-three entitlement offer, priced at 5c each, to raise the capital with shareholders receiving one attaching option for every two new shares issued, as part of the subscription.
The options would be exercisable at 8c each and would expire at the end of September.
Laneway noted on Tuesday that the 5c offer price represented a 16.67% discount to the company’s last closing price at the end of December, and a 20% discount to its 15-day volume weighted average share price.
In addition to funding exploration and mining activities, funds raised would also go towards Laneway’s A$17-million acquisition of the Georgetown gold project, also in Queensland.