5 Million Shares Issued at $0.025 Each, Raising $125,000 for Canterbury Resources
Canterbury Resources Limited has completed a $125,000 capital raise through a private placement of 5 million shares, each accompanied by an option exercisable at $0.05 until the end of 2026.
- 5 million new shares issued at $0.025 each
- Free attaching options with $0.05 exercise price expiring 31 December 2026
- Placement raised $125,000 before costs
- Shares issued under ASX Listing Rules 7.1 and 7.1A
- Compliance with Corporations Act disclosure exemptions confirmed
Capital Raise Details
Canterbury Resources Limited (ASX: CBY) has announced the completion of a private placement, issuing 5 million fully paid ordinary shares at an issue price of $0.025 per share. This placement has raised $125,000 before costs, providing the company with additional working capital as it advances its exploration activities.
Each new share issued comes with a free attaching option exercisable at $0.05, valid until 31 December 2026. These options offer investors potential upside if the company’s share price appreciates, while also representing a future source of capital should the options be exercised.
Regulatory and Compliance Framework
The issuance of the new shares and attaching options was conducted under the company’s placement capacity pursuant to ASX Listing Rules 7.1 and 7.1A. This approach allows Canterbury to raise capital without the need for shareholder approval, streamlining the process and enabling timely access to funds.
Importantly, the company has confirmed compliance with the relevant provisions of the Corporations Act 2001, including Chapter 2M and sections 674 and 674A, ensuring that no excluded information has been withheld from the market. This adherence to regulatory requirements maintains investor confidence and transparency.
Strategic Implications and Outlook
While the announcement does not specify the precise use of the funds raised, the injection of $125,000 will likely support ongoing exploration and operational activities. Given Canterbury’s focus on resource exploration, such capital raises are critical to sustaining momentum in project development and advancing towards potential resource delineation.
The attaching options add a layer of potential future funding, contingent on market conditions and company performance. Investors will be watching closely to see if and when these options are exercised, which could provide Canterbury with further capital without immediate dilution.
Overall, this placement reflects a measured approach to capital management, balancing the need for funding with shareholder interests. It also signals the company’s intent to maintain flexibility in its capital structure as it navigates the challenges and opportunities in the mining exploration sector.
Bottom Line?
Canterbury’s latest placement underscores its ongoing need for capital, setting the stage for future funding moves and operational updates.
Questions in the middle?
- What specific projects or activities will the raised funds support?
- How likely are investors to exercise the attaching options before expiry?
- Will Canterbury pursue additional capital raises if exploration results require more funding?
