20/07/2020 - 15:30

Explorers raise $11m

20/07/2020 - 15:30

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Perth-based explorers S2 Resources and Impact Minerals have both launched capital raisings today, with the proceeds to advance exploration activities at their Western Australian and NSW assets.

Explorers raise $11m
S2 Resources is seeking to develop its gold and base metals projects in WA and Finland. Photo: S2 Resources

Perth-based explorers S2 Resources and Impact Minerals have both launched capital raisings today, with the proceeds to advance exploration activities at their Western Australian and NSW assets.

Osborne Park-based S2 Resources says it will use the proceeds raised from a $7.5 million share placement to fast-track exploration at the company’s nickel assets in WA, comprising the Polar Bear and Norcott projects in the Goldfields, as well as its 80 per cent-owned Eundynie joint venture – with the remaining 20 per cent held by private company Shumwari.

S2 Resources also owns a large area of the Central Lapland Greenstone belt of arctic Finland, where it is exploring for gold.

Chairman Mark Bennett said the company had received strong demand for the placement.

“This enables the company to vigorously pursue its various gold and base metal exploration opportunities in Australia and Finland, with drilling in Finland being managed by S2’s EU personnel and exploration continuing unimpeded in WA despite the constraints being imposed elsewhere by the COVID-1- pandemic,” he said.

The company will issue around 62 million shares priced at 12.5 cents, representing a 13.8 per cent discount to its last closing price of 14.5 cents.

Hartleys and Bell Potter Securities are acting as joint lead managers to the placement, and Murray Capital Partners as co-manager.

S2 Resources says it will have around 14 million in cash, post placement completion.

Company shares were down 3.5 per cent at 12:20pm AEST to trade at 14 cents.

Fellow Perth-based explorer Impact Minerals will raise $3.2 million to progress its Broken Hill nickel-copper-platinum project in NSW.

Impact will issue approximately 213 million shares priced at 1.5 cents each, with Xcel Capital and 180 Markets acting as joint lead managers to the placement.

Impact today requested two back-to-back trading halts, which are expected to remain in place until Friday.

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