Wa1 Resources Ltd
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Why has WA1 Resources raised A$15 million in a new financing round?
WA1 Resources Ltd (ASX: WA1), an exploration and development company, has successfully secured firm commitments for an institutional Placement to raise gross proceeds of A$15 million (before costs). The significant funds will be utilized to advance the company's West Arunta Project.
Who is backing the financing round?
The Placement has garnered strong support from an offshore fund and existing domestic institutional shareholders. This indicates a favorable sentiment towards WA1's prospects among both local and international investors.
What will the funds be used for?
The A$15 million raised from the Placement will primarily be applied towards expanded drilling and development activities at the West Arunta Project. These activities include ongoing exploration efforts, development studies, and upcoming metallurgical programs. Additionally, a portion of the funds will be allocated to administration/corporate costs and general working capital.
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When will the additional shares be issued?
The Placement will result in the issue of 3 million new shares in two Tranches. Tranche 1, which falls under the Company's existing placement capacity, will raise A$12. 8 million before costs and issue approximately 2. 6 million new shares. Tranche 2, subject to WA1 shareholder approval, will raise an additional A$2. 2 million before costs from the issue of 0. 4 million new shares. A General Meeting to approve Tranche 2 of the Placement is expected to be held in early October 2023.
How does the placement pricing work?
The Placement price of A$5. 00 per share represents a 5% discount to the 10-day VWAP (Volume-Weighted Average Price) of WA1 Shares. This discount encourages investor participation and ensures existing shareholders are not diluted excessively.
In conclusion, WA1 Resources has successfully raised A$15 million in new funding to support the advancement of its West Arunta Project. The capital will be used to expand drilling and development activities, including exploration efforts and upcoming metallurgical programs. The placement has garnered strong support from both local and international investors, highlighting the positive sentiment towards WA1's prospects.
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