Broken Hill Prospecting Ltd (ASX:BPL) director Geoffrey Hill has increased his stake in the company by participating in a renounceable rights issue at a price of 1.5 cents per share.
Hill purchased about 29.6 million shares for a total consideration of $444,005.
The company’s renounceable rights offer closed on Monday, February 17, 2020 with applications totalling $1,310,227 - around 52.6% of the total offer.
BPL intends to use the funds raised under the offer to progress work at the La Paz Rare Earths Project in Arizona USA, following the initial success of the maiden mapping and sampling program during October 2019 which led the company to apply for further tenements and double its footprint in the region.
Exploration and metallurgical plans
The company will use the funds 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 which is due in 2020.
- Assessing upgrading the current resource estimate to JORC 2012 standards;
- Commencing detailed metallurgical test work programs;
- Completing a scoping study level economic assessment for the La Paz Project during 2020; and
- Meeting general corporate and capital raising costs.