Celsius Resources Gains Additional Funding Through Silvercorp Metals Subscription Agreement
CELSIUS RESOURCES LIMITED. (CLA) Share Update September 2024 Wednesday 18th
Celsius Resources Secures Additional Funding from Silvercorp Metals
Celsius Resources Limited (ASX, AIM: CLA) has announced a new funding agreement with Silvercorp Metals Inc. (TSX, NYSE: SVM), which will provide significant financial support for Celsius' ongoing projects.
Instant Summary:
- Silvercorp Metals Inc. exercises its participation right in Celsius Resources' equity offers.
- New subscription agreement to raise A$183,667 before costs.
- 14,693,419 new Celsius shares to be issued at A$0.0125 each.
- 918,339 new shares to be issued at A$0.01 each as Implementation Fee Shares.
- 3,673,355 options exercisable at A$0.025 each, expiring in three years.
Subscription Agreement Details
Celsius Resources Limited has entered into a binding subscription agreement with Silvercorp Metals Inc. to raise A$183,667 before costs. This agreement follows the commitment from Silvercorp to participate in future equity offers, as initially announced on 15 May 2023.
Under the terms of the Subscription Agreement, Silvercorp will subscribe for 14,693,419 new Celsius shares at a price of A$0.0125 per share. Additionally, 918,339 new shares will be issued at a deemed price of A$0.01 per share as Implementation Fee Shares.
Options and Settlement
Alongside the shares, Silvercorp will receive 3,673,355 options, which are exercisable at A$0.025 each and will expire three years from the date of issue. The shares and options will be issued under Celsius' existing placement capacity under ASX Listing Rules 7.1.
Settlement is expected to occur around 30 September 2024, with the new shares and options to be admitted to trading on AIM shortly thereafter.
Use of Proceeds
The funds raised from this subscription will be used to advance Celsius' project portfolio, including development expenditure on its Sagay and Botilao projects in the Philippines, as well as other exploration targets. The proceeds will also support the company's corporate functions.
This funding agreement is a positive development for Celsius Resources, providing the necessary capital to advance key projects. The involvement of Silvercorp Metals, a substantial shareholder, underscores confidence in Celsius' future prospects. This could potentially boost investor sentiment and positively impact Celsius' stock price.
Investor Reaction:
Analysts are likely to view this agreement favorably, as it secures additional funding for Celsius Resources and demonstrates continued support from a significant shareholder. This could lead to increased investor confidence and a positive reaction in the stock market.
Conclusion:
Investors should keep an eye on the upcoming settlement and the admission of new shares to trading on AIM. The additional funding from Silvercorp Metals is expected to support Celsius Resources' growth and development, making it a potentially attractive investment opportunity.