Gold-copper exploration company WA1 Resources has received firm commitments for a placement of new ordinary shares to raise $15 million, before costs, to fund ongoing exploration activities and development studies at its West Arunta project.
The placement price of $5.00 per share represents a five per cent discount to the ten-day volume-weighted average price of WA1 shares. It will result in the issue of three million new WA1 shares in two tranches and WA1 having around 56.7 million shares on issue.
Tranche 1 will be issued in accordance with WA1 Resources’ existing placement capacity, raising $12.8 million before costs, resulting in the issue of about 2.6 million new shares.
Tranche 2 is subject to WA1 shareholder approval. It will raise an additional $2.2 million before costs from the issue of 0.4 million new shares. The company will convene a general meeting to have Tranche 2 of the placement approved, which is expected to be held in early October.
WA1 Resources said that the funds raised from the placement will primarily be applied towards ongoing exploration activities and development studies at the West Arunta project in Western Australia, along with administration and corporate costs and general working capital.
The West Arunta project is located approximately 700km west northwest of Alice Springs.
“Development activities are also gathering momentum with initial sighter test work ongoing before upcoming metallurgical programs commence,” WA1 Resources’ managing director Paul Savich said.
“Our team has also continued to grow to support a number of development activities in line with our long-term, structured approach to fast-tracking project development aspects, and this additional funding enhances our ability to do so.”
