Iltani Resources Accelerates Exploration with $2.2M Placement
ILTANI RESOURCES LIMITED. (ILT) Share Update September 2024 Wednesday 18th
Iltani Resources Completes $2.2M Placement for Antimony and Silver Exploration
Iltani Resources Limited (ASX: ILT) has successfully raised $2.2 million through a placement to institutional and sophisticated investors, aimed at accelerating its antimony and silver exploration projects in Northern Queensland.
Instant Summary:
- Raised $2.1 million through the issue of 10,000,000 new shares at $0.21 per share.
- Placement price was at a 5.2% discount to the 10-day VWAP.
- Directors committed to subscribe for $75,000 of shares, pending shareholder approval.
- Funds will be used for drilling at Antimony Reward and Orient Projects.
- Canary Capital and Sanlam Private Wealth acted as Joint Lead Managers.
Details of the Placement
Iltani Resources Limited has announced that it has raised $2.1 million through a placement of 10,000,000 new fully paid ordinary shares at an issue price of $0.21 per share. This placement was made to institutional and sophisticated investors and was priced at a 5.2% discount to the 10-day volume-weighted average price (VWAP) of $0.221 per share.
In addition to the placement, the Board of Directors of Iltani has committed to subscribe for $75,000 worth of shares at the same issue price, subject to shareholder approval at the upcoming annual general meeting (AGM) scheduled to be held no later than 30 November 2024.
Utilization of Funds
The funds raised from this placement will be directed towards drilling activities at the company's Antimony Reward and Orient Projects, both of which are part of the Herberton Project in Northern Queensland. These projects have shown promising results, and the additional funding will enable Iltani to accelerate its exploration efforts.
Management and Broker Involvement
Canary Capital Limited and Sanlam Private Wealth Pty Limited acted as Joint Lead Managers for the placement. They will receive a gross fee of 6% of the funds raised, along with 800,000 options each, plus 1 option for every 5 new placement shares issued and placed by them. These options will have a 3-year expiry and an exercise price of $0.315 per option, pending shareholder approval at the AGM.
Capital Structure Post-Placement
Following the completion of the placement, Iltani's updated capital structure will include 52,144,743 shares and 20,000,000 options. This includes the 10,000,000 new shares issued through the placement and additional shares and options to be issued upon shareholder approval.
The successful completion of this placement is a positive development for Iltani Resources. The additional funds will enable the company to expedite its exploration activities, potentially leading to significant discoveries of antimony and silver. This could enhance the company's valuation and attract further investor interest.
Investor Reaction:
Analysts are likely to view this placement favorably, as it demonstrates strong investor confidence in Iltani's projects and management team. The involvement of reputable institutional investors and the commitment from the Board of Directors further bolster this positive sentiment.
Conclusion:
Investors should keep an eye on Iltani's upcoming drilling results at the Antimony Reward and Orient Projects. The successful execution of these projects could lead to substantial value creation for shareholders. Stay informed about Iltani Resources' progress and consider the potential long-term benefits of this strategic placement.