THE BOURSE WHISPERER: Impact Minerals (IPT: ASX) announced a 100 per cent take-up of its recent rights issue, raising $1.9 million, after costs.
The company said the proceeds would combine with recent previous cornerstone financial support the company has received to provide exploration funding potentially worth up to $9.3 million.
The rights issue follows the announcement in July of a capital investment into Impact by Twiggy Forrest’s Squadron Resources, which will invest up to $7.3 million in Impact, including an initial cash injection of $3 million ($1 million subject to shareholder approval).
Impact has earmarked the funding for its major projects at Broken Hill and near Orange in New South Wales and at Mulga Tank, located northeast of Kalgoorlie in Western Australia.
The company was also awarded NSW and WA government co-funding totalling $353,000 towards drill programs at Broken Hill and Mulga Tank.
“We are delighted with the response to the rights issue with all shares being subscribed for and with more than 340 shareholders taking up their entitlement,” Impact Minerals managing director Dr Mike Jones said in the company’s announcement to the Australian Securities Exchange.
“In addition, our major German shareholder also took up a significant portion of their rights.
“We are also pleased to welcome to the share register, a second German investor who subscribed for a large number of shortfall shares.
“The drilling program underway at Broken Hill is the start of what will be the most exciting period in our company’s history as we try to unlock the upside potential on all three of our flagship projects over the next 12 months.
“The fact that we also have an almost unprecedented amount of $353,000 from government drilling co-fund initiatives to fund two of our planned programs is an independent testament to the projects’ potential.”