EQ Resources Ltd (ASX:EQR) Successful A$4.9 Million Placement
Funding Details
EQ Resources Ltd (ASX:EQR) has successfully raised A$4.9 million through a share placement at an issue price of A$0.04 per share. The placement includes a one-for-one free attaching unlisted option, exercisable at A$0.0675. Oaktree Capital Management, a key investor, has increased its interest in EQ Resources to 14.2% with this participation, which accounted for 20% of the total placement.
Use of Proceeds
Proceeds will be allocated towards capital projects focused on waste stripping, plant expansion, and optimisation at the Mt Carbine site. The firm commitments received indicate strong interest from new and existing institutional and sophisticated investors, showcasing their confidence in EQR’s growth strategy.
Executive Commentary
Kevin MacNeill, CEO of EQ Resources, expressed satisfaction with the results, stating, “We are pleased to complete this Placement cornerstoned by the continued support of Oaktree. The proceeds generated from the Placement will be used in part to strengthen the balance sheet, and to provide funding for the waste stripping works underway at Mt Carbine as we target higher quality ore bodies from late January.”
Timetable for Issuance
The voluntary suspension of shares has been lifted, with trading on the ASX resuming. Settlement of the placement is scheduled for December 20, 2024, and the allotment of new shares and options will occur on December 23, 2024. All new securities will rank equally with existing shares.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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