Zenith Minerals (ASX:ZNC) is pleased to announce that it has received firm commitments in a placement (“Placement”) to raise $6.0 million, to accelerate an active exploration program with a focus on its core gold and copper projects.
Zenith has received firm commitments to raise $6.0 million from Australian and international institutional and sophisticated investors.
- This placement is to be used to accelerate an active exploration program at Zenith’s core Australian projects including:
- Continue with a significant amount of drilling at the Develin-Creek VMS Copper Project (100%),
- Push towards resource inventory at its two wholly owned gold projects – Red Mountain and Split Rocks,
- Continue to add to its overall metal inventory.
- Zenith is well funded with approximately $7.5m cash post offer in addition to $1.9m of script in JV partner Rumble Resources and $5.2m in Bradda Head (BHL.AIM).
The Placement received significant support from new and existing institutional and sophisticated investors, and new shares will be issued under the Company’s available ASX Listing Rule 7.1A placement capacity.
A total of 27.9 million new fully paid ordinary shares in the Company (“New Shares”) will be issued under the Placement, which will rank pari passu with existing fully paid ordinary shares in the Company.
The Placement issue price of $0.215 per New Share represents a 14% discount to the last traded price (on 27 July 2021) and 14% discount to the 30-day VWAP. Settlement of the Placement will take place on or about Wednesday 4 August 2021. This placement represents 9.5% of ordinary shares of the Company.
Commenting on the Placement, Zenith Executive Chairman Peter Bird said:
“This capital raising positions the Company well to continue executing its strategy. Interest in the raise resulted in an oversubscribed book which we had to respectfully scale back. We remain very grateful to our existing shareholder base and welcome several new shareholders including cornerstone institutional shareholders to the register.
Our objective remains value generation in the resources space as has been illustrated over the past 12 months. Funds will be used for both general corporate purposes and to generate resource inventory principally in our core portfolio. Our budget currently projects that approximately 70% of funds will go “into the ground”.
We are very positive about the fundamental demand outlook for base and precious metals. With respect to the former this will be played out in our portfolio by increased activity at our Develin Creek copper project (ZNC 100%) and supporting the ongoing activities at the Earaheedy Zinc Joint Venture – EJV (ZNC 25%)*.