Pacifico Minerals Ltd (ASX:PMY) has closed its 3:7 rights issue after receiving $1.0 million worth of applications for shares and attaching options.
Funds from the offer will be used to advance the company’s flagship Sorby Hills Lead Silver Zinc Project in northern Western Australia.
Specifically to fund project acquisition costs and an exploration program designed to add to the existing resource base and development studies of the Sorby Hills.
On 24 August 2018, Pacifico upgraded the JORC resource at Sorby Hills to 16.5 million tonnes grading 4.7% lead, 0.7% zinc and 53 g/t silver.
Pacifico can place shortfall within three months
The rights issue or entitlement offer allowed eligible shareholders to subscribe for new shares at an issue price of 0.6 cents each on the basis of three shares for every seven shares held.
Eligible shareholders also receive one free attaching option for every two shares subscribed for, exercisable at 1.5 cents each on or before 21 November 2020.
Around $1.8 million worth of shares in the rights offer were not taken up and the company has the right to place this stock over the next three months.
Rights issue followed placement in September
The rights issue followed a placement in early September that raised $1.28 million.
This means the total raised is now $2.28 million and if the shortfall stock is placed the total funding raised will increase to $4.12 million.