Special Report: Firm commitments from investors leads to capital raising of $4.5 million in significantly oversubscribed share placement. 

The WA based exploration company has released the offer as it continues its search for high value gold deposits at its flagship Lefroy Gold Project near Kalgoorlie.

Lefroy Exploration Limited (ASX: LEX) confirmed it has received firm commitments to raise $4.5 million (before costs) through a significantly oversubscribed placement to institutional and sophisticated investors, as part of the company’s overall equity raising of $5.5 million.

The total equity raising of $5.5 million comprises:

  • $4.5 million raised from the completed placement
  • $1.0 million raised through a Share Purchase Plan (SPP) offered to existing shareholders, subject to an individual investment limit of $30,000.


Details of the placement

The placement will result in the issue of 18,750,005 fully paid ordinary shares at an issue price of $0.24 per share. The new issue of shares will rank equally with the company’s existing fully paid ordinary shares.

Lefroy were buoyed with the participation of their largest shareholder in St Ives Gold Mining Company Pty Ltd, a wholly owned subsidiary of Gold Fields Ltd (NYSE/JSE: GFI), which took a pro rata allocation of the new issue of shares, equal to 3.40 million shares – maintaining its current holding within Lefroy of 18.13%.

Gordan Golt, chairman at Lefroy, recognised the importance of the continued support of the company’s major and long-standing shareholders.

“We are grateful for the ongoing support of existing shareholders, including Gold Fields, and are very pleased to welcome a number of new shareholders to our register.”

“We are in a strong financial position to accelerate exploration activities in the Eastern Lefroy Gold Project.”

There will also be director participation in the two raisings, with one director of Lefroy placing a commitment of $170,000, and three directors committing to a further $90,000 in the SPP, pending approval at the next AGM.

The placement is expected to occur on or around Thursday October 29, 2020, with quotation of the new issue of shares to be confirmed the following day.


Share Purchase Plan

The announcement from Lefroy also reiterated previous communication regarding the SPP, which aimed to raise a further $1 million.

The offer will be eligible for all existing shareholders as at 5pm, October 21, with the opportunity to apply for up to $30,000 of new shares.

New shares issued under the SPP will have the same rank as existing shares and shares offered as part of the placement. The offer of shares in the SPP will be $0.24 – the same as the placement.

Eligible Lefroy shareholders will have the option of participating from Thursday, October 29 until 5pm Thursday, 19 November 2020.




This article was developed in collaboration with Lefroy Exploration Limited, 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.