Nelson Resources Ltd (ASX:NES) has closed its renounceable rights issue strongly oversubscribed, raising $2 million to progress its gold exploration strategy at the Woodline Project in Western Australia.
The issue attracted significant support from shareholders and new sophisticated and institutional investors and as a result of the strong demand, is considering alternatives to accommodate some of the excess demand.
"Very pleased with support"
Chairman Warren Hallam said: “We are very pleased with the support shown by the large percentage of existing shareholders that participated in the rights issue and we thank them for their ongoing support."
The total amount raised is $2,007,226 before costs through the issue of 52,821,762 new shares with 17,047,507 shares valued at $647,804 being the shortfall total.
Nelson has also issued almost 26.411 million new options, which are exercisable at 8 cents and expiring on July 8, 2022.
The options will be listed under the ASX code NESOA.
Mahe Capital Pty Ltd advised Nelson on the rights issue and acted as lead manager and underwriter to the capital raising.
Hallam added: “We also welcome the new shareholders that have been introduced through Mahe Capital."
“Nelson is now well funded to proceed to deliver on its exciting exploration strategy."
The new securities are expected to be issued on Tuesday, July 7, and will be trading on a normal basis from Wednesday, July 8.