Superior Resources Limited (ASX: SPQ) has received strong investor support for its 2023 drilling programs, with the Company receiving firm commitments for $4,000,000 via a placement of 133,333,333 fully paid ordinary shares at a price of $0.03 per share (Placement), with 1 attaching option (exercise price of $0.06 and expiry date of 30 November 2024) for every 2 Placement shares subscribed for. Whairo Capital acted as the lead manager of the Placement.
The Placement was strongly supported by a number of new institutions and high net worth investors. The introduction of new institutional investors through the Placement is consistent with SPQ’s objective of increasing the institutional investor presence on its share register ahead of the execution of the Company’s 2023 drilling programs.
Details of Placement
The Placement is being made to sophisticated investors using the Company’s existing placement capacity under ASX Listing Rule 7.1 (66,666,666 options) and 7.1A (133,333,333 shares), and without shareholder approval.
The Placement shares and options will be issued on or around 31 May 2023, subject to receipt of funds. Quotation will be sought for the options, subject to ASX Listing Rules.
The issue price of $0.03 (3.0 cents) represents:
- a 9.00% discount to the last closing price;
- a 14% discount to the 15-day VWAP.
Use of funds
Proceeds from the Placement will be used to:
- Execute the large Greenvale multi-stage, multi-prospect copper porphyry drilling program. This program will target potential porphyry intrusions across up to three porphyry prospects and delineate areas of near-surface copper and gold mineralisation;
- Progress a Feasibility Study and a Resource expansion program at the Steam Engine Gold Project;
- Commence Phase 2 drilling of Bottletree, targeting at least two potential porphyry core targets generated from vectoring information obtained from the 2022 program;
- Commence drilling at Superior’s most advanced porphyry target, Cockie Creek during June 2023;
- Corporate working capital; and
- Placement costs.
Superior’s Managing Director, Peter Hwang commented:
“We are very pleased with the competitive demand under the capital raise in uncertain market conditions. This clearly demonstrates the value potential in the SPQ stock.
“We are now fully funded to accelerate exploration across multiple prospects with at least two drill rigs within the Greenvale porphyry province. With drilling planned to commence next month at our most advanced porphyry prospect, Cockie Creek, and a second drill rig starting shortly afterwards at Bottletree, we are expecting a lot of exciting momentum at Greenvale.
“In the meantime, we have become particularly excited about new developments that are starting to emerge with a third porphyry prospect, Wyandotte. Detailed field studies are starting to show signs that this may be our most important potential porphyry prospect.
“From the program of activity that we can see ahead of us, this year is shaping up to be a very exciting one indeed. We will provide further updates on each of the prospects as activity starts to ramp up.”