Superior Resources Initiates Capital Raise to Advance Gold and Copper Exploration
SUPERIOR RESOURCES LIMITED (SPQ) Share Update July 2024 Wednesday 31st
Superior Resources Launches Capital Raise for Gold and Copper Projects
Superior Resources Limited (ASX:SPQ) has announced a new capital raise to fund continued drilling at its Steam Engine Gold Project and Greenvale Project, aiming to expand its existing gold resource and explore new targets.
Instant Summary:
- 1 for 14 non-renounceable entitlement offer priced at $0.007 per share.
- Attaching unlisted 1 for 2 option exercisable at $0.015 with a 2-year expiry.
- Ongoing 7,000m drilling program at Steam Engine with 2,614m completed.
- First assay results expected in the coming weeks.
- Funds to be used for drilling at Steam Engine, Greenvale, and Bottletree Copper Prospect.
- Revised 2021 Scoping Study nearing completion.
Capital Raise Details
Superior Resources Limited has launched a 1 for 14 non-renounceable entitlement offer to its shareholders, priced at $0.007 per new share. Eligible shareholders will also receive one unlisted option for every two shares subscribed, exercisable at $0.015 with a 24-month expiry.
The capital raise aims to gather up to $1 million in gross proceeds, which will be used to fund ongoing and future drilling activities at the Steam Engine Gold Project and the Greenvale Project. The funds will also support the drilling of CEI-funded holes at the Bottletree Copper Prospect and cover general working capital and offer costs.
Drilling Progress and Future Plans
Drilling at Steam Engine is ongoing, with a 7,000m reverse-circulation and diamond drilling program currently in progress. To date, 2,614m have been completed. The first batch of assay results is expected to be announced in the coming weeks, providing initial insights into the potential of the newly identified high-grade lode targets.
The exploration program at Steam Engine aims to build upon the existing 196,000oz Au Mineral Resource, generate a maiden Ore Reserve, and test multiple new lode targets identified through SAM geophysical survey data. The revision of the 2021 Scoping Study is also nearing completion, which will provide updated economic assessments of the project.
Offer Timeline
The timeline for the rights issue is as follows:
- Announcement of Rights Issue: 1 August 2024
- Ex-Date: 5 August 2024
- Record Date: 6 August 2024
- Prospectus Sent to Eligible Shareholders: 9 August 2024
- Opening Date: 9 August 2024
- Last Date to Extend the Closing Date: 15 August 2024
- Closing Date: 20 August 2024
- Issue Date: 27 August 2024
- Trading of New Shares Begins: 28 August 2024
The capital raise is expected to have a positive impact on Superior Resources' stock as it provides the necessary funds to advance key exploration projects. The ongoing drilling and upcoming assay results could generate significant news flow, potentially boosting investor confidence and interest in the company's shares.
Investor Reaction:
Analysts are likely to view the capital raise favorably, given its potential to expand the company's gold resource and explore new high-grade targets. The upcoming assay results and revised Scoping Study will be closely watched, as they could provide further validation of the project's potential.
Conclusion:
Investors should keep an eye on the upcoming assay results and the revised Scoping Study for the Steam Engine Gold Project. These developments, along with the progress of the capital raise, will be crucial in determining the future prospects of Superior Resources. Staying informed on these updates will help investors make well-informed decisions regarding their positions in the company.