The rights issue closed oversubscribed and raised $2 million with a total of 52,821,762 shares and 26,410,881 new options, exercisable at 8 cents and expiring on July 7, 2022, issued.
Nelson is considering alternatives to accommodate the excess demand under the rights issue and as a result, has today lodged a supplementary prospectus leaving the rights issue prospectus open.
As a result of the rights issue and in accordance with the listing rules, the exercise price of the unlisted options on issue, with an expiry date of November 20, 2020, are reduced from 20 cents to 19.03 cents.
Mahe Capital Pty Ltd advised Nelson on the rights issue and acted as lead manager to the capital raising.
Nelson has welcomed the new shareholders, including institutional shareholders introduced by Mahe Capital, to the register.
The key focus for the company is its 828 square kilometre Woodline Project which lies on the boundary of the Albany Fraser Oregon and the Norseman-Wiluna Greenstone belt in Western Australia.
The Woodline Project contains:
- 45 kilometres of the Cundeelee Shear Zone which already consists of a known more than 20-kilometre gold geochemical and bedrock anomaly, hosted in the same geological structural setting as the 7.7-million-ounce Tropicana Gold mine;
- 30 kilometres of significantly unexplored greenstones along the Norseman-Wiluna greenstone belt;
- A significant and unique holding within the confluence of the Keith-Kilkenny Fault/the Claypan Shear Zone and the Cundeelee Shear Zone, which have hosted many of the largest gold projects in Western Australia; and
- Historical exploration of $14 million by the company, Sipa Resources Limited (ASX:SRI) and Newmont Corporation (NYSE:NEM).