Yandal Resources launches $5 million placement and rights offering to fund resource expansion drilling at Mount McClure By Proactive Investors

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© Reuters. Yandal Resources Launches $5 Million Placement and Rights Offering to Fund Resource Expansion Drilling at Mount McClure

Yandal Resources Ltd (ASX:YRL) has launched a capital raising initiative with a strongly backed equity placement to new and existing institutional and sophisticated investors to raise $2.3m as well as an unsecured rights issue. waivers to raise approximately $2.7 million for a total of $5 million.

The directors of the company also intend to withdraw all of their rights under the rights offering, with the funds to be primarily used for resource expansion drilling at the Mt McClure gold project, as well as for mining activities. follow-up exploration on high-potential prospects.

Participants in the investment component will receive one free unlisted option with an exercise price of $0.24 and expiring on October 31, 2024 for every two shares subscribed.

MST Financial Services Pty Ltd acted as sole lead manager for the placement, which was oversubscribed.

Issuance of irrevocable rights

The non-revocable rights issue that occurs concurrently with the share offering provides eligible shareholders with a rights issue of 1 for 5.15 at $0.12 per share.

For two new shares subscribed within the framework of the capital increase, Yandal also offers 1 new free option attached under the same conditions as the stock placement options.

The rights issue will open on October 21 and close on November 4, 2022, unless extended in accordance with ASX rules.

YRL has so far received firm commitments from existing shareholders to subscribe for a total of just under $1.2 million, while MST Financial Services Pty Ltd has partially subscribed the rights issue to amounting to just over $1.5 million.

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