Denala Limited Boosts Stake in Belararox with Additional Share Subscription
BELARAROX LIMITED (BRX) Share Update September 2024 Monday 30th
Denala Limited Increases Investment in Belararox
Belararox Limited (ASX: BRX) has announced that Denala Limited, a major shareholder, will subscribe for an additional 7.5 million shares, demonstrating strong confidence in the company's TMT Project in Argentina.
Instant Summary:
- Denala Limited to subscribe for up to 7.5 million additional BRX shares.
- Proceeds will support ongoing exploration activities at the TMT Project.
- Denala's increased stake signifies strong confidence in Belararox and its projects.
Investment Details
Belararox Limited, an advanced mineral explorer focused on high-value clean energy minerals, has announced that Denala Limited will subscribe for up to an additional 7.5 million fully paid ordinary shares in the company. This follows a recent successful capital raising and the commencement of earthworks at the TMT Project in Argentina.
Denala had previously entered into an agreement with Belararox for a two-tranche placement of up to 21 million BRX shares. The first tranche of 6 million shares was issued on August 16, 2024, and the second tranche of 15 million shares was approved by shareholders on September 25, 2024. The second tranche shares are expected to be issued at A$0.25 per share, reflecting the 5-day volume-weighted average price (VWAP) prior to the shareholder meeting.
Additional Share Subscription
In addition to the two-tranche placement, Denala has agreed to subscribe for up to a further 7.5 million shares. The issue price for these additional shares will be no less than the 5-day VWAP for BRX shares prior to the receipt of funds from Denala. The subscription is subject to Denala's shareholding not exceeding 19.9%, and payment is expected by November 14, 2024.
Project Significance
The TMT Project is situated in an underexplored area between the El Indo and Maricunga Metallogenic Belts in Argentina. This region has seen significant discoveries in recent years, including Filo del Sol, Los Helados, JosemarÃa, Valeriano, and El Encierro. The investment from Denala will support the exploration of promising copper porphyry targets at the Tambo South and Malambo prospects, with drilling scheduled for November 2024.
Denala's increased investment in Belararox is a strong vote of confidence in the company's TMT Project and its potential for significant mineral discoveries. This additional funding will enable Belararox to accelerate its exploration activities, potentially leading to new discoveries that could enhance the company's value. The market is likely to view this positively, as it underscores the project's potential and the strategic partnership between Belararox and Denala.
Investor Reaction:
Analysts are expected to react positively to this announcement, as it indicates strong support from a major shareholder. The additional funding will provide Belararox with the necessary resources to advance its exploration activities, which could lead to significant mineral discoveries. Investors may see this as a sign of confidence in the company's future prospects, potentially leading to an increase in the stock price.
Conclusion:
Investors should keep a close eye on the progress of the TMT Project and the results of the upcoming drilling activities. Denala's increased investment is a strong endorsement of Belararox's potential, and the additional funding will support the company's growth and exploration efforts. This is an exciting time for Belararox, and investors may want to consider the potential long-term benefits of this strategic partnership.