G11 Resources Accelerates Koonenberry Project with Successful $4.35 Million Placement
G11 (G11) Share Update July 2024 Wednesday 17th
G11 Resources Secures $4.35 Million to Boost Exploration at Koonenberry Project
G11 Resources Limited (ASX: G11) has announced a successful placement raising A$4.35 million to accelerate exploration activities at its Koonenberry Project. The funds will be used to drill test high-priority targets and advance regional prospects.
Instant Summary:
- G11 Resources raises A$4.35 million via placement.
- Board of Directors commits $700,000, pending shareholder approval.
- Funds to be used for drill testing high-priority targets at Black Hills, Wilandra Central, and Cymbric Vale Cu prospects.
Placement Details
G11 Resources Limited has successfully raised A$4.35 million through a placement to institutional and sophisticated investors. The placement involved issuing 217,500,000 new fully paid ordinary shares at A$0.02 per share. The Board of Directors has committed to subscribe for $700,000, subject to shareholder approval at an extraordinary general meeting (EGM) in late August 2024.
The shares will be issued utilizing the company's placement capacity in accordance with ASX Listing Rules 7.1 and 7.1A. Euroz Hartleys Limited and Canaccord Genuity (Australia) Limited acted as Joint Lead Managers for the placement. As part of the agreement, 15 million unlisted options will be issued to the Joint Lead Managers, subject to shareholder approval.
Use of Funds
The funds raised will be directed towards accelerating exploration activities at the Koonenberry Project. This includes drill testing high-priority targets at the Black Hills, Wilandra Central, and Cymbric Vale Cu prospects. Additional geochemical sampling and ground geophysics programs will also be conducted to advance regional prospects to drill-ready status.
The Koonenberry Project, located 80km east of Broken Hill, New South Wales, covers 3,300 square kilometers and is highly prospective for various styles of mineralization, including copper, nickel, gold, and silver. The project area contains over 200km of strike of the significantly under-explored Koonenberry Belt.
Timetable and Capital Structure
The indicative timetable for the placement is as follows:
- Announcement of Placement: 17 July 2024
- Settlement of Shares: 22 July 2024
- Allotment and Normal Trading: 23 July 2024
- EGM to Approve Directors' Participation: 28 August 2024
- Expected Settlement of New Shares: 30 August 2024
Post-placement, the company's capital structure will include 966,622,113 shares, 142,388,889 options, and 2,000,000 performance rights.
This successful placement significantly strengthens G11 Resources' financial position, enabling the company to aggressively pursue its exploration goals at the Koonenberry Project. The commitment from the Board of Directors and the support from new and existing shareholders reflect strong confidence in the company's management and project potential. The increased exploration activities could lead to significant discoveries, potentially boosting the company's stock price and market valuation.
Investor Reaction:
G11 Managing Director, Richard Buerger, expressed excitement about the placement, highlighting the strong support from shareholders. Analysts have noted the strategic importance of the Koonenberry Project and the potential for significant mineral discoveries. Investor sentiment appears positive, with many looking forward to the results of the upcoming drilling programs.
Conclusion:
Investors should keep an eye on the progress of G11 Resources' exploration activities at the Koonenberry Project. The successful placement and the company's strategic focus on high-priority targets could lead to significant value creation. Shareholders are encouraged to participate in the upcoming EGM and stay informed about the company's developments.