Pioneer Resources completes raising, announces SPP

THE BOURSE WHISPERER: Pioneer Resources (ASX: PIO) has completed a capital raising of $500,004 to help fund ongoing field programs at the company’s exploration projects in Western Australia.

The capital raising was via a placement of approximately 27.78 million fully paid ordinary new shares at an issue price of 1.8 cents per share, to professional and sophisticated investors and clients of Bell Potter Securities.

Pioneer subsequently announced a Share Purchase Plan to raise up to a further $750,000.

Under the SPP, existing eligible shareholders can apply for up to $15,000 worth of new shares in the company at the same issue price as the placement; 1.8 cents per each.

The company explained the funds will be initially allocated to the Fairwater nickel project in the Albany-Fraser Orogen, and for near-mine drilling at the Blair nickel mine extensions project.

“We are delighted with the response from new investors to the company’s share placement, which we see as strong validation for our ongoing, targeted exploration programs,” Pioneer Resources managing director David Crook said in the company’s announcement to the Australian Securities Exchange.

“We are also pleased to offer the Share Purchase Plan to existing eligible shareholders on the same terms as the placement, providing the opportunity to increase share holdings in the company as it enters a very active exploration phase.

“The timing of these capital raisings follow the receipt of the final approvals needed to commence ground disturbing work programs at the company’s exciting Fairwater nickel project.

“The POW assessment was approved on 6 February 2015, and immediately an EM crew commenced work.”

Email: dcrook@pioresources.com.au

Website: www.pioneeresouorces.com.au