By Belararox Limited (ASX:BRX) (“Belararox” or “the Company”) is pleased to announce a placement (“Placement”) raising $2.5 million (before costs), at $0.33 per share, to fund a range of exploration activities at the Company’s Australian projects while simultaneously accelerating exploration at the highly prospective TMT project in Argentina.
Investment Highlights
Successful share placement undertaken, with commitments to raise $2.5 million.
Placement was strongly supported by new and existing sophisticated and professional investors.The new equity will help fund a range of exploration activities at the Company’s Argentine and Australian projects over the next 6-12 months.Belararox is focused on commencing exploration work at 11 significant porphyry and associated targets at the TMT Project in Argentina as well as pursuing the significant outcropping pegmatites reported at Bullabulling (WA) and progressing exploration work at Belara (NSW).
“The overwhelming support received by existing and new shareholders is most encouraging as we commence exploration activities at the exciting TMT Project in Argentina and progress the good work achieved at our Bullabulling and Belara / Native Bee Projects in Australia.
The Company has a pipeline of activities planned for the 2nd half of 2023 on our 3 Projects which are now funded. We expect a continuous release of news flow as we build on the successful exploration results achieved to date.”
Placement
The structure of the Placement is as follows:
i. 7.58 million fully paid ordinary shares at $0.33 per share (“Placement Shares”), representing a 16.5% discount to both the last traded price of BRX shares on 14 June 2023 and the 15-day volume weighted average price; and
ii. 3.79 million free attaching options to subscribe for fully paid ordinary shares to be issued to investors on a one-for-two basis with an exercise price of $0.66 (being a 100% premium to the Placement price) and an expiry date that is three years from their date of issue (“Placement Options”).
The Placement Shares will rank equally with, and carry the same terms as, existing shares on issue.
The Placement Shares, Placement Options and Lead Manager Options are not subject to shareholder approval and will be issued within the Company’s existing placement capacity under ASX Listing Rules 7.1 and 7.1A. It is expected that the Placement Shares will be issued on or about 27 June 2023. The Placement Options and Lead Manager Options will be issued on or about the same date together with a prospectus or cleansing notice (as applicable) to facilitate their quotation (and on-sale) on the ASX, subject to meeting the ASX’s minimum listing requirements.
Furthermore, the attaching Placement Options are expected to provide meaningful additional capital the Company’s balance sheet, at a materially higher valuation than the Placement price, should the Company achieve further exploration success at either of its Australian or Argentinian projects.
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