THE BOURSE WHISPERER: Pioneer Resources (ASX: PIO) announced the completion of its current capital strategies, raising approximately $4.8 million, which it intends spending on drilling program at the company’s most advanced lithium projects.
This drilling will further test known spodumene-bearing pegmatites at the Mavis Lake and recently acquired Raleigh Projects in Ontario, Canada.
It will also scratch any additional new pegmatite targets that may result from the lithium-focussed geochemistry surveys Pioneer has in progress at its 100 per cent-owned Pioneer Dome project.
In total, Pioneer has raised $4,788,700 (before issue costs), comprising:
$3,270,400 from a Placement to professional and sophisticated investors of Sanlam Private Wealth (before issue costs).
This Placement resulted in the issuing of approximately 90.8 million fully paid ordinary shares at an issue price of 3.6 cents per share, and approximately 30.3 million free attaching options to acquire a fully paid ordinary share in the company at an exercise price of 6 cents each on or before 31 July 2018.
$1,518,300 from the Share Purchase Plan (SPP), (before issue costs), under which the company issued approximately 42.2 million fully paid ordinary shares at an issue price of 3.6 cents per share.
Subject to shareholder approval, approximately 14.1 million free attaching options, each to acquire a fully paid ordinary share in the company, will be issued on a one option for every three shares subscribed for and issued basis.
Options may be exercised at a price of 6 cents each on or before 31 July 2018.
The new funds enhance the company’s cash balance which, at 31 March 2016, was $2.05 million.
“On behalf of the Board I extend our thanks and appreciation to new and existing shareholders who participated in either the placement or the SPP, and for their on-going support,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.
“The company is at a very exciting stage and once statutory approvals are received, we will commence the first lithium-focussed drilling on our recently acquired Canadian and Western Australian exploration assets, from a well-funded base.”