Chris Ellison-backed Wildcat Resources has entered a trading halt ahead of launching a capital raising of up to $100 million off the back of a surging share price.
The ASX-listed Pilbara explorer requested a trading halt this morning for the purpose of considering, planning and executing a capital raising of about $80 million, with the ability to accept oversubscriptions of an additional $20 million at its discretion.
The lithium aspirant would tap investors through the issue of about 105.26 million new fully paid ordinary shares at 76 cents per share when it intends to exit the trading halt on November 13.
The junior miner has recently enjoyed an inflated share price with its securities last trading at 85.5 cents after hitting a high of $1 on Monday.
MinRes paid $158.7 million for the shares at 85 cents apiece to acquire the 19.85 per cent stake in Wildcat Resources, according to an ASX notice on October 31.
The major miner also has a 50 per cent ownership interest in the Tabba Tabba project, where Wildcat is progressing early-stage resource evaluation and mine planning studies.
The Port Hedland project is also about 80 kilometres from MinRes’s 40 per cent-owned Wodgina lithium project in a joint venture with US lithium giant Albemarle Corporation.