Announcement highlights
The company received a commitment to subscribe for 10 million Australian dollars;
These funds will be used for subsequent drilling projects of multiple rigs and payment of FirstRand Investment Holdings (referred to as RMB) arrears;
At present, Los Cerros has sufficient funds to conduct extensive exploration in the Quincha Gold project in the Colombian porphyry gold mineralization zone;
Hartleys Limited is the sponsor of this additional offering.
This additional issuance will allow Los Cerros to continue drilling projects involving three drilling rigs to test multiple targets. At the same time, the company will pay RMB 2.21 million in arrears. In the new contract, RMB will reduce the future equity of the Kunqiya project from 15 million to 14 million.
Jason Stirbinskis, Managing Director of Los Cerros, commented:
"
We believe that we have successfully seized the opportunities brought by our established strategic direction, recent drilling successes, investor interest and strong gold prices.
"We are very pleased to see that many well-known mining investors have participated in this subscription and expressed their strong recognition of the Kunqiya project.
"With these large amounts of funds, the Los Cerros team can fully focus on the current multi-rig drilling project and advance more exploration plans and related strategies. We hope to bring more to Los Cerros and our shareholders next year. Harvest.
"
Financing details
In this financing, the company will issue 86,932,750 additional shares. The average issuance price of new shares is A$0.115 per share and the financing is A$10 million.
This additional issuance is aimed at "professional and institutional" investors. It is expected to be delivered on September 23, 2020. The price of new shares is 11.2% discounted to the company's trading volume-weighted average price in the past 10 days.
In addition to the additional issuance, after obtaining the approval of the general meeting of shareholders, Ross Ashton, chairman of Los Cerros, will also subscribe for A$30,000 shares. Before the issuance, Ashton was already the company's top ten shareholders.
Today's Los Cerros share price fell 9.52% to A$0.19, with a market value of A$69.58 million.
