Nexus Minerals Limited (ASX: NXM) (Nexus or the Company) is pleased to advise that it has received commitments to raise approximately $1.25 million through the issue of up to 22 million fully paid ordinary shares at 5.7 cents per share (Placement). In addition to the Placement, the Company intends to raise up to a further $750,000 through a Share Purchase Plan (SPP) which will be offered to existing eligible shareholders.
Use of Proceeds
Capital raised pursuant to the Placement and SPP will be used to fund exploration, including a high impact RC drilling program on the Wallbrook Gold Project, which is located approximately 140km northeast of Kalgoorlie and 35km north of Saracen Mineral Holdings’ Carosue Dam Operations in Western Australia. Funds raised will also be allocated to working capital requirements.
Managing Director Andy Tudor said “The proceeds from the Placement and SPP will allow Nexus to accelerate work programs at the Wallbrook Gold Project. RC drilling will commence this week on two priority Wallbrook project targets. Commencing at the Paint Prospect and then moving to the Crusader Prospect – it will be an exciting time for Nexus personnel and shareholders alike over the coming months. The planned drilling has been the culmination of a lot of hard work by the Nexus geology team and we will eagerly await the results.”
“To have achieved such a strong level of investor support for the Placement was very encouraging. This includes Saracen Mineral Holdings who confirmed their commitment to Nexus’ exploration efforts by participating in the placement to maintain their existing 6% shareholding. I would like to thank all investors who participated in the placement and encourage existing shareholders to participate in the SPP. I would also like to thank Hartleys for their support.”
Placement
The Placement received strong support from a range of institutional, sophisticated and professional investor clients of Hartleys Limited. In addition to the Placement, Directors of Nexus have committed to subscribe for a total of $67,800 on the same terms as the Placement, subject to shareholder approval. The Placement will be made pursuant to the Company’s placement capacity under ASX listing rule 7.1 (13,200,000 shares) and 7.1A (8,800,000 shares).
Share Purchase Plan
The Board of Nexus is pleased to provide existing eligible shareholders the opportunity to participate in the capital raising on the same terms as the Placement through an SPP to raise up to an additional $750,000. The SPP will be undertaken on a “first come – first served” basis.
The record date for the SPP is 19 February 2019.
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