Felix Gold's Strategic Capital Raising to Boost Antimony Production
FXG (FXG) Share Update September 2024 Tuesday 24th
Felix Gold Announces $4.8 Million Capital Raising for Antimony Production
Felix Gold Limited (ASX: FXG) has successfully secured $4.8 million through a well-supported placement, aiming to accelerate its antimony production at the Scrafford Antimony Mine.
Instant Summary:
- Felix Gold raises $4.8 million through a placement at $0.075 per share.
- Strong support from both existing shareholders and new institutional investors.
- Funds will be used for development and exploration activities, focusing on near-term antimony production.
- Repayment of Convertible Note to MDF Global Limited via issuance of 9,125,000 shares at $0.08 per share.
Capital Raising Details
Felix Gold Limited (ASX: FXG) has announced that it has received firm commitments to raise $4.8 million through the issuance of 64,000,000 fully paid ordinary shares at a price of $0.075 per share. This placement was strongly supported by both existing shareholders and new sophisticated and institutional investors, including one of North America's largest asset managers who will become a substantial holder following the allotment.
The funds raised will be directed towards advancing development and exploration activities across Felix Gold's projects. A key focus will be on initiating near-term antimony production at the Scrafford Antimony Mine. Additional funds will be allocated for engineering studies, working capital, and covering the costs associated with the placement.
Repayment of Convertible Note
In addition to the capital raising, Felix Gold's Board has resolved to repay the balance of the Convertible Note outstanding to MDF Global Limited through the issuance of 9,125,000 fully paid ordinary shares at $0.08 per share. This decision follows shareholder approval received at a meeting held on 30 July 2024.
Investor Briefing
Felix Gold's Executive Director, Joe Webb, will host a live investor briefing on Thursday, 26th of September at 1 pm (AEST) to discuss the placement and the company's future ambitions. Investors can register for the briefing through the Felix Gold investor portal.
The successful capital raising is a significant milestone for Felix Gold, providing the necessary funds to accelerate its antimony production efforts. The involvement of a major North American asset manager as a substantial holder is a strong vote of confidence in the company's prospects. This development is likely to positively impact Felix Gold's stock price as investors react to the potential for increased production and revenue.
Investor Reaction:
Analysts are likely to view this capital raising positively, given the strong support from both existing and new investors. The focus on near-term antimony production at the Scrafford Antimony Mine could be a significant value driver for the company. However, investors will be keen to see how effectively Felix Gold can utilize the raised funds to achieve its production goals.
Conclusion:
Felix Gold's successful capital raising marks a crucial step towards achieving its near-term antimony production ambitions. Investors should monitor the company's progress closely and consider the potential long-term benefits of this strategic move. For those interested in staying updated, attending the upcoming investor briefing will provide valuable insights into Felix Gold's future plans.