Lefroy Exploration Limited ('LEX' or 'the Company') (ASX: LEX) is pleased to announce that it has received firm commitments to raise approximately $3.3 million (before issue costs) through an oversubscribed placement to institutional and sophisticated investors ('Placement').
The includes $270,000 from Lefroy Directors. LEFROY CHAIRMAN, DAVID KELLY, COMMENTED: 'We are grateful for the ongoing support of existing shareholders, and welcome new investors who have joined us through this Placement. Securing this additional equity funding allows Lefroy to accelerate its twin strategies of exploring it highly prospective tenements to make new discoveries to expand its existing 1Moz gold Resource, while seeking to commercialise its inventory of near surface gold deposits.
The very strong gold market is providing the catalyst for innovative and pragmatic transactions to take place to unlock the value of unmined resources within the Kalgoorlie-Kambalda region. Lefroy is very well positioned to participate in this process. The coming year holds great promise for Lefroy shareholders. We look forward to providing regular updates to the market on our progress.'
PLACEMENT DETAILS
The Placement will result in the issue of a total of approximately 47.14 million fully paid ordinary shares ('Shares') at an issue price of $0.07 per New Share. New Shares issued under the Placement will rank equally with the Company's existing Shares. The Placement issue price was at a 14.6% discount to the last closing price of LEX (on 23 October 2024) and a 9.7% discount to the 15-day VWAP of LEX Shares. The Placement was taken up by new overseas and domestic institutional and sophisticated investors and received strong support from existing shareholders. Lefroy's Directors have committed to participate in the Placement for a total of $270,000. This will be subject to Shareholder approval at the Company's next General Meeting of Shareholders. The proceeds of the Placement will be used to accelerate the Company's advancement towards commercialising its advanced gold projects and additionally, seeking to grow its gold resource base centred within the Company's flagship Lefroy Gold Project ('LGP'). Coupled with the Location 45 freehold land, the LGP is located 35km southeast of Kalgoorlie within the Company's commanding and contiguous 635km-2 tenement package. Lefroy acquired 100% of the mineral rights to Location 45 from its title holder, Franco Nevada Pty Ltd, in May 2023 (refer to ASX release 23 May 2023).
Contact:
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