Nexus Minerals to Raise $2.3 Million
Nexus Minerals (ASX:NXM) has raised $2.3m via a placement to sophisticated and institutional clients of Hartleys. The raising, priced at 19.5c, represents a 7% discount to the 5 day VWAP. Nexus plans to use the funds to accelerate development of the Pinnacles JV project, located NE of Kalgoorlie.
Nexus Minerals Limited (ASX: NXM) (Nexus or the Company) is pleased to advise it has received firm commitments for a capital raising of approximately $2.3million, by the issue of up to 11.9 million ordinary shares at 19.5 cents per share (Placement). The price represents a 7% discount to the Nexus’ 5 day VWAP.
The Placement will be made to sophisticated and professional investor clients of Hartleys Limited and corner-stoned by a number of local and international institutional investors. Managing Director Andy Tudor has also committed to a total of 153,850 new shares, representing $30,000, on the same terms as the Placement, subject to shareholder approval.
Capital raised from the Placement will be used to accelerate exploration activities, including drilling on the Company’s Pinnacles JV tenement and Pinnacles Regional tenements, located approximately 130km northeast of Kalgoorlie, Western Australia. Funds raised will also be allocated to working capital requirements.
Hartleys Limited is Lead Manager to the Placement.
Nexus has entered into a Farm-in and Joint Venture Agreement over the Pinnacles JV Gold Project with Saracen Gold Mines Pty Ltd, a subsidiary of Saracen Mineral Holdings Limited (ASX:SAR) (see ASX Release 17 September 2015). This investment is consistent with the Company strategy of investing in advanced gold exploration assets.
Nexus Minerals is a well-funded resource company with a portfolio of gold projects in Western Australia. With a well-credentialed Board, assisted by an experienced management team, the Company is well placed to capitalise on opportunities as they emerge in the resource sector.