Lycaon Resources Ltd (ASX: LYN) has secured firm commitments to raise a total of A$1.5M through the issue of 6M shares, at an issue price of A$0.25 per share.
The placement was well supported by new and existing shareholders and enables the company to complete planned exploration programmes at the company’s 100% owned projects in the Kimberley and West Arunta regions, Western Australia.
Mr. Thomas Langley, technical director commented, “It is extremely pleasing to have the support of existing and new shareholders in the recent placement as we get ready to drill the Bow River nickel copper project and progress our West Arunta projects in parallel,”
“The support is a strong endorsement of the quality of our projects, and I am looking forward to an exciting few months ahead as drilling gets underway.”
The issue price of $0.25 represents a 13.7% discount to the last traded price and a 2% premium to the 30-day VWAP.
Additionally, Inyati Capital Pty Ltd acted as lead manager to the placement and will be paid a 6% fee on funds raised. The LM will receive options in the amount of 10% of the total shares issued under the placement, with a strike price at a 50% premium to the issue price of the placement.
Lycaon has said that proceeds will be used towards drilling at the Bow River nickel project, finalize permitting and commence drilling at the Stansmore REE project, and general working capital.
To find out more, please visit www.lycaonrsources.com
