With an eye on expanding its work in Greenland and the Northern Territory, Eclipse Metals Ltd (ASX:EPM) has proposed a pro-rata non-renounceable rights issue offer of new fully paid ordinary shares in the company.
Transformative resource projects
This initiative is designed to strengthen the company’s financial position and accelerate the development of transformative resources that align with global priorities for sustainable technologies and energy solutions.
Shares will be available at an issue price of A$0.002 per new share to raise up to around A$1.144 million before costs.
The one-for-four pro rata non-renounceable right issue offer represents a 50% discount to the last closing share price of A$0.004 and a 40.29% discount to the 30-day volume-weighted average price of shares prior to the announcement.
Eclipse hopes eligible shareholders will take advantage of this offer to strengthen their stake as the company embarks on a phase of significant growth.
The offer is exclusive to eligible shareholders, ensuring current holders can consolidate their ownership before any potential future uplifts in share value.
What's it for?
Proceeds from this endeavour will be channelled into:
- expansion of the resource base at the Ivigtût Project in Greenland;
- advancement of the critical mineral and REE exploration programs;
- acceleration of the negotiation and development of the company’s uranium portfolio in Australia's Northern Territory;
- costs of the offers; and
- general working capital.
Shareholders who are registered as at 4.00pm (WST) on Tuesday, December 17, with a registered address in Australia, New Zealand or Singapore will have the opportunity to participate in the offer.
Shortfall offer
Eligible shareholders who subscribe for their entitlements in full may also apply to take up additional new shares under a shortfall offer at the same issue price of A$0.002 per new share.
Any new shares issued under the shortfall offer will be issued at the Board’s discretion.
The two offers are a key plank in the company’s strategy to progress its portfolio of critical mineral projects, including the flagship Ivigtût Project in Greenland and the company’s uranium portfolio in Australia's Northern Territory.