Celsius Resources Limited said this week that the company’s Share Purchase Plan (SPP), which closed on Friday 18 May, was heavily oversubscribed with applications of more than US$6 million (N$75 million) received from shareholders.
The company said given that valid applications received prior to the close of the SPP exceed the targeted US$3 million (N$37 million), it will scale back valid applications equally on a pro rata basis in accordance with the terms of the SPP offer.
“Excess application monies will be returned to successful applicants. Directors who applied for shares under the SPP offer will not receive any shares to maximise shares available to holders,” it said.
The SPP provided eligible shareholders with the opportunity to apply for up to US$15,000 (N$189,000) worth of shares at 18.5 cents per share to raise a maximum of US$3 million.
The company will issue 16,216,216 new shares on 1 June 2018 in accordance with the SPP timetable.
The funds raised from the SPP and the recently completed US$9 million placement will be used primarily to fund the progression of the Opuwo Cobalt Project.
“This is an excellent result and I would like to thank our shareholders for their strong support. Along with the completed placement we are well positioned to advance the Opuwo Cobalt Project and we look forward to continuing to progress the studies on the project as quickly as possible,” Managing Director, Brendan Borg, said.
The Opuwo Cobalt Project is located in northwestern Namibia, approximately 800 km by road from Windhoek, and approximately 750 km from the Walvis Bay port.
It consists of four Exclusive Prospecting Licences covering approximately 1,470 km2.
Celsius Resources commenced drilling at the project in early March, and has since confirmed sediment hosted copper-cobalt mineralisation over more than 15 km of strike, with over 100 km strike length of prospective mineralised horizon in total to be explored.