Blackstone Minerals Ltd (ASX:BSX) has received firm commitments from sophisticated, professional and institutional investors to raise up to $17.8 million through a placement of 42,426,356 fully paid ordinary shares at an issue price of 42 cents per share.
Additionally, in recognition of the company’s existing retail shareholders, eligible shareholders will have the opportunity to participate in a Share Purchase Plan (SPP) at the same issue price.
The company intends to raise $3 million under the SPP through the issue of 7,142,857 shares and reserves the right to accept oversubscriptions.
Fidelity International will cornerstone the capital raise with an $8 million investment.
Funding Ta Khoa project
Managing director Scott Williamson said: “We’re excited to welcome new long term institutional investors to our register and the opportunity to raise $21 million for Blackstone to support the ongoing exploration, resource drilling and future studies at the Ta Khoa Project.”
Net proceeds from the placement and SPP are intended to be used to fund exploration, resource drilling, as well as the pre-feasibility study and definitive feasibility study at the project in northern Vietnam.
Funds will also be allocated for general working capital purposes.
Placement and SPP timing
The placement will be completed under the company’s existing ASX Listing Rule 7.1 capacity of 17,503,209 and 7.1A of 24,923,147 ordinary shares and will be conducted without a prospectus with the shares being offered to and subscribed for by investors to whom disclosure is not required under the Corporations Act.
ASX has confirmed that the company can rely on the Temporary Extra Placement Capacity Class Waiver under Listing Rule 18.1 to allow the SPP to be undertaken at the same time as the placement.
In order to comply with ASIC Corporations (Share and Interest Purchase Plans) Instrument 019/547, any shareholder who participated in the company’s SPP completed on October 11, 2019, will have any application under the SPP scaled back (or rejected in whole) to ensure that such shareholder is not issued a value of shares which together with the value of shares issued under the previous SPP exceeds $30,000.
Subject to the above, the SPP provides the opportunity for eligible shareholders to subscribe for up to $30,000 worth of new shares in the company.
The shares issued under the SPP will be purchased free of brokerage, no prospectus will be issued and shares issued under the placement and SPP will rank equally with existing shares on issue.
The indicative timeline includes:
- Record date for the SPP 5pm (AWST) of September 11, 2020;
- Announcement of placement and SPP and lodge Appendix 3B (prior to commencement of trading) on September 14 2020;
- Issue of shares under placement, Appendix 2A and Cleansing Notice for placement lodged with ASX on September 17 2020;
- Cleansing Notice for SPP lodged with ASX and dispatch date for SPP offer document (Opening Date) on September 18 2020;
- Closing date of October 1, 2020;
- Announcement of result of SPP on 7 October 2020;
- Issue of shares under SPP and Appendix 2A for SPP lodged on October 12 2020; and
- Quotation on ASX of shares under the SPP - October 13 2020.
The company may vary the dates and times of the offer without notice.