AusQuest Secures Funding for Peru Drilling with Successful Rights Offer
AQD (AQD) Share Update November 2024 Sunday 10th
AusQuest Completes Successful Rights Offer, Raising $1.8 Million
AusQuest Limited (ASX: AQD) has successfully completed its non-renounceable entitlement offer, raising $1.8 million to fund its upcoming drilling projects in Peru.
Instant Summary:
- Raised $1.8 million through a non-renounceable entitlement offer.
- Strong support from existing shareholders, including directors.
- Funds to be used for drilling copper assets in Peru starting December 2024.
Successful Rights Offer Completion
AusQuest Limited, a company listed on the Australian Securities Exchange under the ticker AQD, has announced the successful completion of its non-renounceable, pro-rata rights offer. This offer was initially announced to the ASX on October 7, 2024, and was available to eligible shareholders registered by October 11, 2024.
The offer allowed shareholders to subscribe for two new shares for every five existing shares at an issue price of $0.008 per new share. The goal was to raise up to $2.64 million before costs. Additionally, for every two new shares subscribed, shareholders received one free attaching new option.
Strong Shareholder Support
By the offer's closing date on November 4, 2024, AusQuest had received applications for 228,785,477 new shares and 114,392,719 free attaching new options. This resulted in a total of $1,816,214 raised before costs. The support included participation from Euroz Hartley Limited, which acted as a foreign nominee approved by ASIC to sell the entitlements of ineligible shareholders.
Funding for Future Exploration
Graeme Drew, AusQuest's Managing Director, expressed gratitude towards the shareholders who participated, highlighting the strong financial position the company now enjoys. The funds raised will be directed towards the company's drilling campaign at the Cangallo Copper Prospect in Peru, which is set to commence in December 2024. AusQuest also plans to continue exploring opportunities in Australia in collaboration with South32.
This successful capital raising positions AusQuest well to advance its exploration projects, particularly in Peru. The strong shareholder support indicates confidence in the company's strategy and potential. The upcoming drilling campaign could significantly impact AusQuest's stock price, especially if initial results are promising.
Investor Reaction:
Analysts are likely to view the successful rights offer as a positive development, reflecting strong shareholder confidence and a clear path forward for AusQuest's exploration activities. The focus will now shift to the outcomes of the drilling in Peru and any subsequent announcements.
Conclusion:
Investors should keep an eye on AusQuest's progress as it begins its drilling operations in Peru. The success of these projects could enhance the company's value and offer significant returns. Engaging with the company's updates will be crucial for making informed investment decisions.