The company noted that it is receiving early support for the offer from shareholders and the extension will provide more time for shareholders to consider the offer and accommodate postal delays anticipated over the holiday period.
The one-for-one renounceable rights issue is priced at 1.5 cents and can raise up to $2.49 million.
This will add to the $6.2 million that BPL is able to earn over the next 5 years from the sale of the Thackaringa Project to its JV partner.
Focusing on the La Paz Project
BPL’s chairman Creagh O’Connor said: “It is BPL’s intention to use the funds raised under the offer to progress work at the recently acquired La Paz Rare Earths Project (the Project) in Arizona USA, following the initial success of our maiden mapping and sampling program during October 2019, which led the company to apply for further tenements and double our footprint in the region.
“Moving forward, BPL intends to carry out exploration and technical programs focused on metallurgical test work forming a critical part of the Scoping Study Economic Assessment of the Project due 2020.
Use of funds
“The proceeds of the Offer will be used for the following purposes:
- assess upgrading the current NI 43-101 Resource estimate to JORC 2012 standards
- commencing detailed metallurgical test work programs;
- complete a Scoping Study level economic assessment for the La Paz Project during 2020; and
- meeting general corporate and capital raising costs.”