Zenith Minerals (ASX: ZNC) is undertaking a capital raising of approximately up to $1.95 million (before costs) that will allow Zenith to provide funding for ongoing exploration activities on the Company’s exploration portfolio and for working capital.
Zenith’s MD Mick Clifford commented “The recent strong gold results from our 100% owned Split Rocks in the Forrestania belt, and Red Mountain in Queensland warrant immediate follow up, along with continued work on lithium targets at Split Rocks, Waratah Well, and progressing our new wholly owned REE project in Wyoming.
“In conjunction with partner funder exploration particularly on overseas gold and lithium projects, additional funding through this offer should see shareholders exposed to considerable high-impact project activity in next 12 months.
“Your directors have indicated their intention to participate in the entitlements offer and encourage you to consider carefully this opportunity to increase your holding through this discounted offer with no brokerage costs.’’
The capital raising will be undertaken through a non-renounceable entitlement offer of one new fully paid ordinary share (New Share) for every six (6) existing fully paid ordinary shares (Shares) held by Eligible Shareholders as at 5.00pm (AEDT) on Thursday, 31 October 2019 (Record Date).
The Entitlement Offer will be made by the Company pursuant to an offer document in accordance with section 708AA of the Corporations Act 2001 (Cth) (Corporations Act) (Offer Document) to be sent to Eligible Shareholders on or about Tuesday, 5 November 2019.
The new shares will be issued at a price of A$0.055 per share, representing a discount of 13% to the last closing price on Wednesday, 23 October 2019 and a discount of 17% to the 30-day volume weighted average price of Zenith ordinary shares.
A total of up to 35,519,116 shares will be issued pursuant to the Entitlement Offer. The Entitlement Offer period will open on Tuesday, 5 November 2019 and is due to close on Tuesday, 19 November 2019 (unless extended by the Company in accordance with the Corporations Act and the Listing Rules).