West Perth-based Bass Metals has announced it has raised $3.55 million through a placement to European institutional investors.
West Perth-based Bass Metals has announced it has raised $3.55 million through a placement to European institutional investors.
The placement is for 14.2 million shares at an issue price of 25 cents per share.
In a statement to the Australian Securities Exchange, Bass Metals said the funds will be used to fast track exploration drilling at its Fossey East discovery and fund the Gold Recovery Feasibility Study and the Heavy Media Separation study.
Bass Metals' managing director Michael Rosenstreich said it was a great opportunity for the company to top-up its liquidity so it could meet shareholder expectations.
See company statement below:
Australian base and precious metals producer, Bass Metals Ltd (ASX:BSM) ("Bass" or "the Company") is pleased to announce it has raised $3.55 million in a Placement, predominantly to entities on behalf of mainly European institutional investors.
The placement is for 14.2 million shares at an issue price of 25 cents per share, a 13% discount to the 10 day volume weighted average closing price prior to the trading halt.
The Placement was completed under the Company's available 15% placement capacity to professional and sophisticated investors. The shares will be allotted and issued following receipt of cleared funds by the Company.
The proceeds of the Placement will supplement the Company's discretionary funds available to fast track exploration drilling at the Fossey East discovery and fund the Gold Recovery Feasibility Study and the Heavy Media Separation study. This funding strengthens a recent $5 million silver based financing, to provide working capital support to the Hellyer Mine Project (HMP) development as well as funding these growth initiatives.
Managing Director, Mr. Michael Rosenstreich commented that "shareholders expect us to chase these growth opportunities aggressively and given the constraints on discretionary expenditure of the secured project loan facility for the HMP, and the support from the institutional investors it was a great opportunity to top-up the liquidity of the company to be able to meet those expectations".
