West Perth-based base metals exploration company Overland Resources Ltd will raise $12 million through two placements to fund evaluation and exploration of its Andrew zinc deposit in Canada, the company has announced.
The first placement, which has already been completed, raised $3 million after placing 5 million shares at 60 cents each - 15 per cent of the company's total issued capital - with the money raised used to evaluate the project.
The second placement will be of 15 million shares at 60 cents each to raise $9 million, to be spent on target testing, regional exploration, new project generation and feasibility and test work.
The second offer is conditional on shareholder approval, with a meeting to be held on May 21.
The company will also exercise its option to acquire a 90 per cent interest in the project for $350,000 after completing the second placement.
The broker of the deal, Sydney-based KTM Capital Pty Ltd, will place the shares issued to its Australian and North American clients.
The second offer will open May 21, to close the next day.
The full text of a company announcement is pasted below
