Gold Mountain Limited (ASX:GMN) Announces Entitlement Offer and Director Appointment
Entitlement Offer Details
Gold Mountain Limited has proposed a 1 for 3 pro rata accelerated renounceable entitlement offer to raise approximately $3.05 million. The offer includes new fully paid ordinary shares at $0.002 each, with one attaching option per new share. Existing shareholders Magnus Capital SA and Jose Luis Manzano are underwriting the offer, committing to subscribe for 50% of any shortfall.
Use of Funds
The funds raised will be allocated to exploration activities in Brazil, maintenance of licences in Papua New Guinea, corporate costs, and transaction expenses related to the entitlement offer.
Appointment of Director
The company has appointed Mr Pablo Tarantini as a non-executive director. Mr Tarantini brings extensive experience in the mining industry, including roles as Executive Director of the Argentinian Bureau of Investment and International Trade and as M&A Director at General Electric and Advent International Corporation for Latin America.
Underwriting Arrangements
Underwriters Magnus Capital S.A and Jose Luis Manzano will each cover 50% of any shortfall in the entitlement offer without receiving fees. Their combined potential voting power could reach up to 23.34% and 18.06%, respectively, assuming no additional shares are issued.
Motley Fool contributor Lianne Eastty 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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