Bastion Minerals Raises Funds for Canadian Copper and Swedish REE/Copper Projects
BASTION MINERALS LIMITED (BMO) Share Update August 2024 Thursday 1st
Bastion Minerals Successfully Raises $500,000 and Announces Entitlement Issue
Bastion Minerals Limited (ASX: BMO) has successfully completed a placement to raise $500,000 and announced an entitlement issue to raise up to $1.5 million. These funds will support high-grade copper projects in Canada and REE/copper projects in Sweden.
Instant Summary:
- Raised $500,000 through a placement at $0.007 per share.
- Plans to raise up to $1.5 million through an entitlement issue.
- Funds will be used for exploration and drilling in Canada and Sweden.
- Free attaching options exercisable at $0.03 each, expiring in 3 years.
- No shareholder approval required for the placement.
Placement Details
Bastion Minerals Limited (ASX: BMO) has successfully raised $500,000 through a one-tranche placement. The placement was conducted at a price of $0.007 per share, which represents a nil discount to the last traded price, a 7.29% discount to the 5-trading day Volume Weighted Average Price (VWAP) of $0.00755, and a 6.97% premium to the 15-trading day VWAP of $0.00654.
The placement included a 1 for 3 free attaching option exercisable at $0.03 each, expiring 3 years from the date of issue. A total of 71,428,571 new shares and 23,809,524 options will be issued to investors under the placement, utilizing the company's existing capacity under ASX Listing Rules 7.1 and 7.1A.
Entitlement Issue
In addition to the placement, Bastion Minerals plans to raise up to $1.5 million through a non-renounceable entitlement issue. This will involve issuing 1 new ordinary share for every 2.36 ordinary shares held at an issue price of $0.007, along with a 1 for 3 free attaching option exercisable at $0.03 each, expiring in 3 years. The entitlement issue will not be underwritten, but GTT Ventures has agreed to place any shortfall.
Use of Funds
The funds raised from the placement and entitlement issue will be used for various projects in Canada and Sweden. In Canada, the focus will be on reconnaissance exploration, deposit modeling, project generation for drilling the ICE Copper Project, and drill preparation for JORC 2012 Resource calculation and upgrade. In Sweden, the funds will be used for geophysics to define targets for a drilling program and re-assaying of historical core for REE potential.
Timetable
The indicative timetable for the placement includes key dates such as the trading halt and announcement of the placement on 31 July 2024, the placement conducted on 1 August 2024, and the settlement of the placement on 9 August 2024. The new shares issued under the placement are expected to commence trading on 12 August 2024.
The entitlement issue will follow a similar timetable, with the announcement of the offer and lodgement of Appendix 3B with ASX on 20 August 2024, the offer opening on 27 August 2024, and the closing date on 12 September 2024. The new shares and options are expected to commence trading on 20 September 2024.
The successful raising of funds through the placement and the planned entitlement issue are positive developments for Bastion Minerals. These funds will enable the company to advance its high-grade copper and REE/copper projects in Canada and Sweden, potentially leading to significant resource upgrades and exploration success. The market reaction to this news is likely to be positive, as investors see the company's commitment to advancing its projects and the potential for future growth.
Investor Reaction:
Analysts are likely to view the successful placement and planned entitlement issue favorably, as they provide the necessary funds for Bastion Minerals to advance its projects. The market may respond positively to the news, with investors showing increased confidence in the company's ability to execute its exploration and development plans.
Conclusion:
Investors should keep an eye on Bastion Minerals as the company advances its high-grade copper and REE/copper projects in Canada and Sweden. The successful raising of funds through the placement and the planned entitlement issue are positive steps towards achieving significant exploration and resource milestones. Stay informed on Bastion Minerals' progress and consider the potential long-term benefits of their projects.