Boadicea raising exploration funds through rights issue
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Boadicea is looking to raise $2.98m through a fully underwritten rights issue to accelerate exploration, business development and growth opportunities.
With a strong focus on looking after shareholders, the 1 for 5 pro rata renounceable rights issue is priced at 24c per share, which represents a 17.6 per cent discount to the 30-day volume-weighted average price of the company’s shares. The capital raising is managed and underwritten by Peak Asset Management.
The share offer and capital raising is further strengthened with Boadicea Resources (ASX:BOA) adding one free option to each share exercisable at 42c each and expiring within three years.
Boadicea Managing Director Jon Reynolds says: “The funds raised will provide a solid financial base to explore the company’s highly prospective gold, copper and nickel exploration prospects in some of Australia’s best real estate locations.”
“The board believes the support of its long-standing shareholders should continue to be recognised and decided to continue to reward existing shareholders with an attractive entitlement issue plus options and the ability to sell their entitlement rights.”
Boadicea will focus its exploration efforts on the Koongulla project in Western Australia’s Paterson Province where previous work has identified a relatively shallow dome feature with some initial similarities to the 30Moz Telfer Dome gold deposit.
Dome structures are a primary source of mineralisation concentration in the Paterson Province.
The Koongulla Dome has been identified at about the same dimensions as Telfer and geophysical analysis of the structure shows it to be located under 200m to 250m of cover.
Five potential exploration targets have already been defined for copper-gold mineralisation.
The company will also channel funds to advance its Clarke Reward project in Queensland’s Drummond Basin and two licences in the southern part of the Fraser Range, of Western Australia, which to date has had little exploration effort dedicated to this part of this highly prospective region.
This article was developed in collaboration with Boadicea Resources, a Stockhead advertiser at the time of publishing.
This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.