Larvotto Resources Announces Successful Closure of Oversubscribed Share Purchase Plan
LARVOTTO RESOURCES LIMITED (LRV) Share Update July 2024 Tuesday 23rd
Larvotto Resources Successfully Closes Oversubscribed Share Purchase Plan
Larvotto Resources Limited (ASX: LRV, Germany: K6X) has successfully closed its Share Purchase Plan (SPP), raising $1,000,000 before costs. The plan was oversubscribed by 41%, leading to a pro-rata scale back on subscriptions.
Instant Summary:
- Raised $1,000,000 before costs through the SPP.
- SPP was oversubscribed by 41%.
- Pro-rata scale back on subscriptions.
- 9,523,767 new shares to be issued at $0.105 per share.
- Funds to be used for various drilling programs and working capital.
Share Purchase Plan Details
Larvotto Resources Limited (ASX: LRV, Germany: K6X) announced the successful closure of its Share Purchase Plan (SPP) on 19 July 2024. The company raised $1,000,000 before costs, exceeding expectations as the plan was oversubscribed by 41%. Due to the high demand, a pro-rata scale back on subscriptions is being completed, and refunds will be processed upon allotment.
The SPP offered eligible shareholders the opportunity to subscribe for new fully paid ordinary shares up to a maximum value of $30,000 per eligible shareholder. These new shares were offered on the same terms as the Placement to sophisticated investors conducted by the company in July 2024. A total of 9,523,767 new shares will be issued at an issue price of $0.105 per share, following the SPP timetable.
Use of Funds
The funds raised from the SPP and the Placement will be allocated towards several key projects and operational needs. These include the completion of the Pre-Feasibility Study (PFS) for the Hillgrove Project, an RC drill program at Clarks Gully (Hillgrove Project), a diamond drill program at Bakers Creek (Hillgrove Project), and drilling activities at the Mt Isa Project. Additionally, a portion of the funds will be used for working capital purposes.
Company's Gratitude
Larvotto Resources expressed gratitude to its shareholders for their continued support. The successful closure of the SPP and the oversubscription indicate strong investor confidence in the company's projects and future prospects.
The successful closure of the oversubscribed SPP is a positive indicator for Larvotto Resources. Raising $1,000,000 before costs provides the company with the necessary capital to advance its key projects, which could lead to significant future returns. The oversubscription suggests strong investor confidence, which may positively influence the stock price in the short to medium term.
Investor Reaction:
Investors and analysts have reacted positively to the news, highlighting the strong demand for the SPP as a sign of confidence in Larvotto Resources' projects. The allocation of funds towards critical drilling programs and the Pre-Feasibility Study is seen as a strategic move that could enhance the company's value.
Conclusion:
Larvotto Resources' successful closure of its oversubscribed Share Purchase Plan is a promising development for the company and its shareholders. Investors should keep an eye on the upcoming drilling programs and the results of the Pre-Feasibility Study, as these will be crucial in determining the company's future prospects. Stay informed and consider the potential long-term benefits of holding Larvotto Resources shares.