THE BOURSE WHISPERER: S2 Resources (ASX: S2R) announced the completion of the bookbuild for a placement to domestic and international institutional and sophisticated investors raising $9.1 million.
S2 said the placement was heavily oversubscribed with a lot of interest from a variety of existing and new investors, which the company put down to recent exploration news from its Polar Bear project in Western Australia.
The placement of 22.7 million ordinary shares was at an issue price of 40 cents per share.
S2 Resources indicated its intention to undertake a Share Purchase Plan (SSP) to raise up to $3 million at the same issue price as the placement, in order to ensure retail shareholders are able to participate.
Post-completion of the placement and the SPP, S2 will be very well funded with a cash balance sitting around $27.5 million after transaction costs.
The company has earmarked the net proceeds from the Placement and SPP to accelerate ongoing exploration activities and for general corporate purposes.
“It is pleasing to see such strong demand, which reflects the level of interest in the company’s assets,” S2 Resources managing director Mark Bennett said in the company’s announcement to the Australian Securities Exchange.
“The placement enables us to further strengthen our share register with selected institutional investors whilst the SPP enables our smaller retail shareholders to participate at the same pricing.
“Having such a strong balance sheet positions S2 to vigorously pursue its various opportunities unfettered by cash constraints, which puts us in a very advantageous position when compared to many others in the junior exploration sector.”