Helix Resources (ASX:HLX) has announced a renounceable entitlement offer aiming to raise approximately $1.68 million. The funds are earmarked to support drilling activities at the White Hills Project in Arizona, United States, as well as streamlining resource estimates at the nearby Gold Basin Project. Helix Resources is a mineral exploration company focused on developing its landholdings across central New South Wales, Australia, through gold and copper assets.
The offer involves issuing shares at $0.001 each, representing a 50 per cent discount to the last closing price of $0.002, and a 44.4 per cent discount to the 30-day volume weighted average price (VWAP). The entitlement offer is scheduled to open on August 20 and will close on September 3 at 5pm AWST. Investors will also receive one free-attaching option for every two shares subscribed, exercisable at $0.002 within two years of issue.
Mahe Capital is acting as the lead manager for the offer, and is partially underwriting it for up to $500,000. Helix Resources’ directors have indicated their intention to participate in the offer. Non-executive director Kylie Prendergast plans to take up her full entitlement, while Executive Chair Michael Povey and associated entities intend to take up to 50 per cent of his entitlement.
In addition to the White Hills drilling campaign, the raised capital will be used to refine a resource estimate for the Gold Basin Project. The company has stated that recent drilling at Gold Basin indicates the project holds potential for a substantial resource upgrade.
