The placement was well supported and surpassed the target of $4 million with funds to support the company’s exploration efforts in Zambia and South Australia.
Argonaut Resources CEO Lindsay Owler said: “The Argonaut board sincerely thanks those who have contributed to this capital raising and looks forward to delivering development and exploration results that drive the company’s share price during this buoyant period in the commodities cycle.”
Resume drilling at Nyungu
Owler said: “The funds raised will allow Argonaut to resume drilling at the Nyungu copper-cobalt deposit in north-western Zambia.
“The Nyungu deposit is over 1,700 metres in strike length and urgently requires infill drilling for resource estimation purposes as well as exploration drilling for strike extensions and repetitions of the mineralised package.”
Owler added: “Argonaut will also use funds for continued deep drilling at the Murdie iron oxide copper-gold (IOCG) exploration program in South Australia.
“At Murdie, Argonaut is drilling large gravity targets that could represent IOCG deposits at depth.
“The Murdie exploration licences are nearby to OZ Minerals’ Carrapateena mine and BHP’s Oak Dam copper discovery in the Olympic Dam domain of the eastern Gawler Craton.”
As a part of the placement initiatives, the company plans to issue 433.3 million new shares under the ASX Listing Rules (LR) 7.1 and the remaining 260 million new shares under the LR 7.1A.
The placement will be carried out using the company’s 25% placement capacity as approved by shareholders at the company’s annual general meeting on November 10, 2020.
New shares will be issued at a fixed price of $0.0075, representing a discount of 16.7% to Argonaut’s last closing price on June 9, 2021, of $0.009 and a 16.1% discount to the 5-day volume-weighted average price (VWAP) of A$0.0089.
The company confirms that the issue price satisfies the pricing requirements in Listing Rule 7.1A.3.
Owler concluded: We urge shareholders to read the presentation which we released to the ASX on June 10, 2021.
“This presentation provides more detail on the use of funds and the exciting projects that we are pursuing.”