Savannah Goldfields Limited (ASX:SVG) Completes Placement and Entitlement Offer
Capital Raising Completion
Savannah Goldfields Limited (ASX:SVG) has successfully completed a placement of 79 million new shares and the institutional component of its entitlement offer. The placement raised approximately $1.19 million, while the institutional entitlement offer raised around $1.5 million.
Placement Details
The placement involved issuing 79 million new shares to W&E Maas Holdings Pty Ltd, associated with Mr Wes Maas, at an issue price of 1.5 cents per share. This raised approximately $1.19 million and is part of the company’s $14 million capital raising program. The placement is conducted under ASX listing rule 7.1 and underwritten by Morgans Corporate Limited. Allotment of new shares is scheduled for February 11, 2025.
Institutional Entitlement Offer
The institutional component of the entitlement offer saw robust participation, with approximately 100 million new shares subscribed, raising about $1.5 million, which represents around 35.6% of the total offer. The offer opens to existing shareholders on a 1-for-1 entitlement basis, also underwritten by Morgans Corporate Limited. Settlement and allotment of shares will occur on February 10 and 11, 2025, respectively.
Retail Entitlement Offer
Savannah Goldfields will open the retail component of the fully underwritten entitlement offer on February 10, 2025, aiming to raise an additional $2.7 million. Eligible retail shareholders from Australia and New Zealand can subscribe at the same offer price and ratio as the institutional offer, with options to purchase additional shares subject to board discretion.
Future Plans
The capital raised through the placement and entitlement offers is intended to strengthen Savannah’s balance sheet and fund the recommencement of gold mining operations at its Agate Creek and Georgetown projects, as well as resource growth activities.
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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