Laneway Resources launches a fully underwritten entitlement offer
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In the latest good news for Laneway Resources investors, the emerging miner has launched a fully underwritten one for three entitlement offer of approximately $7.9 million to fund its regional growth strategy.
The directors of Laneway Resources (ASX:LNY) have put their skin in the game by strongly supporting the offer, which is fully underwritten by Bizzell Capital Partners, an entity associated with Laneway Chairman and well-known Brisbane businessman Stephen Bizzell.
All company directors are subscribing for shares and its largest shareholder, a group of entities associated with Bizzell, has committed to subscribe for their pro-rata entitlement of approximately $2 million.
The offer is part of a previously announced capital raising program of $11 million. It will be used mainly to fund Laneway’s exploration at the flagship Agate Creek gold project, as well as for part consideration for the Georgetown Gold Project, plus costs associated with getting the regional processing hub up and running again.
The news follows last week’s announcement of more high-grade gold close to surface at Agate Creek, including 3m at 7.95 grams per tonne gold (g/t) from only 25m and 6m at 8.43g/t from 64m, including 1m at a much higher grade of 32.8g/t.
The results additionally firmed up the scale potential of the project, where a multi-Element Study that identified Kidston-style intrusion-related gold system (IRGS) potential.
This offer comes hot on the heels of a completed placement that raised approximately $3.1m in total.
The entitlement offer sees ordinary shares offered to existing shareholders on a 1 for 3 entitlement basis at an issue price of 0.5c per share.
For every two new shares issued to a holder as part of their subscriptions under the Entitlement Offer, the holder will also receive one attaching option exercisable at 0.8 cents and expiring 30 September 2022.
This article was developed in collaboration with Laneway 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.