Far East Gold Launches $2 Million Share Purchase Plan
FAR EAST GOLD LTD (FEG) Share Update July 2024 Wednesday 31st
Far East Gold Announces $2 Million Share Purchase Plan
Far East Gold Limited (ASX: FEG) has announced a new Share Purchase Plan (SPP) aimed at raising up to $2 million to fund its exploration projects and provide working capital.
Instant Summary:
- Far East Gold to raise up to $2 million via Share Purchase Plan at $0.136 per share.
- SPP follows an Initial Placement of $2.3 million at the same price.
- Funds will support Woyla Project Maiden Resource, Trenggalek Project Phase 1 Drilling, and Idenburg Project JORC resource estimate.
- Eligible shareholders can apply for up to A$30,000 of new shares.
- SPP priced at a 24.44% discount to the last closing price on 26 July 2024.
Share Purchase Plan Details
Far East Gold Limited (FEG), an Australian copper-gold exploration company, has announced a Share Purchase Plan (SPP) to raise up to $2 million. The new fully paid ordinary shares will be issued at 13.6 cents per share, which represents a 24.44% discount to the last closing price on 26 July 2024 and a 20.00% discount to the volume weighted average price (VWAP) over the five trading days before the SPP announcement.
The SPP offers eligible shareholders, who were registered as of 7:00pm (AEST) on 30 July 2024, the opportunity to apply for up to A$30,000 of new shares. The full details of the SPP will be provided in the SPP Offer Booklet, which is expected to be released to the ASX and dispatched to eligible shareholders on 1 August 2024.
Use of Funds
The funds raised from the SPP will be utilized to advance several key projects. These include the Woyla Project Maiden Resource, the Trenggalek Project Phase 1 Drilling Program, and the Idenburg Project JORC resource estimate update. Additionally, the funds will provide general working capital and cover the costs of the offer.
Participation and Timetable
Shareholders can request an electronic copy of their personalized Share Purchase Plan application form as soon as it becomes available. The SPP opens at 10:00am AEST on 1 August 2024 and closes at 5:00pm AEST on 14 August 2024. The allotment and issuance of new shares under the SPP are scheduled for 21 August 2024.
The Share Purchase Plan is expected to provide Far East Gold with the necessary funds to advance its exploration projects, which could lead to significant discoveries and value creation. The 24.44% discount on the share price may attract strong participation from existing shareholders, potentially boosting the company's stock price. However, the dilution effect of the new shares could temper some of the positive sentiment.
Investor Reaction:
Analysts are likely to view the SPP favorably, given the strategic use of funds for advancing key projects. The significant discount on the share price may also be seen as an attractive opportunity for existing shareholders. However, some investors may be cautious about the potential dilution of their holdings.
Conclusion:
Investors should consider participating in the Share Purchase Plan to take advantage of the discounted share price and support Far East Gold's exploration initiatives. Monitoring the progress of the funded projects will be crucial in assessing the long-term impact on the company's value.