How Will the A$40 Million Raised by WA1 Resources Develop the West Arunta Project?
WA1 Resources Ltd Secures A$40 Million for West Arunta Project Development
Melbourne, January 18, 2024 – WA1 Resources Ltd (ASX: WA1), a prominent player in the mining sector, announced a successful capital raise of A$40 million. This funding is a significant step in advancing the company's ambitious West Arunta Project.
A Strategic Financial Move: Placement Details and Impact
Capital Raised: WA1 Resources Ltd has garnered A$40 million through a placement, targeting institutional, sophisticated, and professional investors.
Share Issuance: The company will issue four million new fully paid ordinary shares.
Pricing Strategy: Shares are priced at A$10 each, a strategic discount of 5. 5% to the 30-day VWAP (Volume Weighted Average Price), and a 10. 2% discount to the last traded price of WA1’s shares.
Story Continues.. after this ad because we need some dollarydoos
Financial Position Post-Placement
Enhanced Cash Position: Post-placement, WA1’s cash reserves are expected to be approximately A$56. 7 million.
Share Distribution: Following the issuance, WA1 will have around 61. 3 million shares in circulation.
Role of Financial Partners
Sole Lead Manager: Canaccord Genuity (Australia) Limited led the placement process.
Co-Managers: MST Financial Services Pty Ltd and Bell Potter Securities Limited also played significant roles.
Application of Funds: Advancing the West Arunta Project
Primary Application: The bulk of the funds will be directed towards drilling, exploration, metallurgical testwork, process and project studies, and permitting activities at the West Arunta Project.
Other Uses: Remaining funds will cover administration, corporate expenses, costs of the placement, and general working capital needs.
WA1’s Forward Strategy: Exploration and Resource Development
Paul Savich, WA1’s Managing Director, expressed confidence in the company's financial robustness following the placement. He emphasized that the additional funding would bolster ongoing exploration, including the 2024 field season and other critical project development activities.
Future Plans
Continued Exploration: A steady flow of results from the 2023 drill campaign is anticipated in the current quarter, setting the stage for the 2024 field season.
Project Advancement: Key activities will include metallurgical testwork, process development planning, exploration and resource drilling.
Initial Mineral Resource Estimate: Targeting the Luni area, the company plans to release an initial Mineral Resource estimate in the June quarter of 2024.
Support from Investors
Shareholder Participation: The placement saw engagement from existing shareholders and new high-profile institutional investors from Australia, Europe, and North America.
Indicative Placement Timetable
Announcement: January 18, 2024
Settlement: January 24, 2024
Allotment and Trading of New Shares: January 25, 2024
This financial infusion through the placement marks a pivotal moment for WA1 Resources Ltd, potentially accelerating the progress of the West Arunta Project and strengthening the company's position in the mining industry.
Promote your business on our growing investor platform: Advertise With Us
Berkshire is hoarding so. much. cash.
Buffet indicator is showing some wild times ahead perhaps, combine that with Berkshires record high cash hoard of 30%... chart via barchart.com / Longtermtrends
Looks like we're going through something, but who would have thought with all these tarrifs, inflation and trade wars going on
Where does this end up long term with small stocks suffering white giant caps are taking all the coin?
🔺 Student Loan Delinquencies Hit Record 12.9%...
The spike in red reflects financial strain returning fast. Credit card delinquencies are rising too, hinting that lower-income consumers might be nearing a breaking point. What's going on...
#ASX:ASN Is Anson Resources’ US$330M Financing Deal the Key to Unlocking Utah’s Lithium Potential?
