Argent Minerals Limited - Private Placement and Share Purchase Plan
09.06.2015 | ABN Newswire
Sydney, Australia (ABN Newswire) - Argent Minerals Ltd. (ASX:ARD) is pleased to announce that it has received firm commitments from sophisticated and professional investors for a placement to issue approximately 22,727,273 fully paid ordinary shares (Shares) at a price of $0.022 each with one (1) free attaching ASX-listed $0.175 option (expiring 31 March 2016) (Options) for every one (1) Share subscribed for to raise approximately $500,000 before costs (Placement). Settlement of the Placement will be subject to the receipt of cleared funds.HIGHLIGHTS:
- Successful capital raising completed to sophisticated and professional investors for approximately $500,000
- Share Purchase Plan to be offered to eligible shareholders on same terms
- Proceeds to fund the 7 hole 3,200 metre deep diamond drilling program targeting high-grade lead/zinc, and downhole geophysics at Kempfield, and a high resolution induced polarisation survey at the West Wyalong Project to aid drill planning to test the porphyry copper-gold target
The Placement pricing represents a discount of 6% to the 5 day VWAP of $0.023.
The Shares will be issued under the Company's existing capacity to issue securities under the placement capacities provided for by ASX Listing Rules 7.1 and 7.1A.
The Options to be issued as part of the Placement will be issued subject to shareholder approval being obtained.
Fees of 6% of the total funds raised under the Placement are due to be paid.
SHARE PURCHASE PLAN (SPP)
The Argent Board has elected to extend an opportunity to Argent shareholders to participate on the same pricing terms as that offered to and taken up by institutional and sophisticated investors. Under the Share Placement Plan (SPP), eligible shareholders each acquire up to a maximum of $15,000 worth of new fully paid ordinary shares at an issue price of $0.022 per share. The Shares will be issued on the same terms as the Placement with one (1) free attaching Option for ever one (1) Share subscribed for. The Record Date for determining entitlements under the SPP is 5.00pm (WST) on 5 June 2015, and the closing date of the SPP is expected to be on or about the date of the upcoming shareholder meeting.
The issue of the Options under the SPP will be subject to shareholder approval being obtained.
The complete terms and conditions of the SPP will be mailed to all eligible shareholders in due course.
Shareholders are urged to read the SPP terms and conditions in their entirety before deciding whether to participate in the SPP.
USE OF FUNDS
The proceeds from the Placement and SPP will used to fund the 7 hole 3,200 metre extended reach Kempfield deep diamond drilling program announced on 29 April 2015 targeting high-grade zinc/lead mineralisation and potentially, copper and gold, a downhole geophysics surveys for selected Kempfield diamond holes, a high resolution induced polarisation (IP) geophysics survey at the Company's West Wyalong Project, and working capital.
The Company will send a notice of meeting to shareholders in due course with respect to, amongst other things, approvals required for the issue of the Options as part of the Placement and the SPP.
About Argent Minerals Limited:
Argent Minerals Ltd. (ASX:ARD) is an Australian publicly listed company with a 100% interest in a silver/gold project at Kempfield NSW. Work is underway on the preparation of an EIS and a feasibility study for the first stage of the project which will involve heap leaching some 8.8 million tonnes of mainly oxide and transitional material to produce over 9.5 million ounces of silver and 15,000 ounces of gold over a 5 year mine life. Argent is also earning up to a 70% interest in two other NSW projects - gold at West Wyalong and base metals at Sunny Corner.
Contact:
Argent Minerals Ltd.
T: +61-2-9262-2211
F: +61-2-9322-6610
E: admin@argentminerals.com.au
www.argentminerals.com.au