WPG RESOURCES LTD WPG Resources Ltd (ASX:WPG) today announces the finalisation of a $7.2 million Placement to sophisticated and professional investors.
New shares for the Placement are priced at $0.048 per share, a discount of 24.5% to the volume weighted average price in the 15 days immediately prior to this announcement. A free 1 for 2 unlisted option exercisable at $0.08 by 30 June 2019 is attached to the Placement shares. The options attaching to the Placement shares will be issued subject to shareholder approval and a General Meeting of Shareholders will be convened as soon as possible to consider the approval of the Placement options.
The Placement was heavily oversubscribed. Veritas Securities Limited was Lead Manager for the Placement and Adelaide Equity Partners Pty Ltd acted as a Corporate Adviser.
The Placement will be followed by an Entitlement Issue to eligible shareholders which at the date of this announcement is anticipated to be a one for eight pro rata non-renounceable entitlement issue to eligible shareholders. Full details, including a timetable for the Entitlement Issue will be announced in the coming days. Shares and attaching options will be offered at the same price as the Placement and pending finalisation and execution of formal documentation, it is expected that Veritas Securities Limited will be Underwriter for the Entitlement Issue subject to customary conditions and terminating events. Adelaide Equity Partners Pty Ltd will act as a Corporate Adviser.
The funds raised by the Placement will be used for the Challenger mill expansion, mine development, exploration and for general working capital purposes.
Commenting on the capital raising, the Company's Executive Chairman Bob Duffin said he was grateful for the support of investors who participated in the Placement and shareholders who elect to support the Entitlement Issue. "The investment metrics are attractive", he said.
13 June 2017ASX Announcement - 13 June 2017
The Entitlement Issue will be made to Eligible Shareholders pursuant to a Prospectus, which will include a personalised Entitlement and Acceptance Form. The Prospectus will provide further details on how to participate in the Entitlement Issue.
Forward looking statements
This document may include forward-looking statements. Forward-looking statements include, but are not limited to statements concerning WPG's planned activities, including but not limited to mining and exploration programs, and other statements that are not historical facts. When used in this document, the words such as "could", "plan", "estimate", "expect", "intend", "may", "potential", "should" and similar expressions are forward-looking statements. In addition, summaries of Exploration Results and estimates of Mineral Resources and Ore Reserves could also be forward looking statements. Although WPG believes that its expectations reflected in these forward-looking statements are reasonable, such statements involve risks and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements.
Further InformationFor further information please contact WPG's CEO, Wayne Rossiter on (02) 9251 1044.
WPG Resources Ltd. published this content on 13 June 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 13 June 2017 00:34:09 UTC.
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