Patriot Raises $1.9M at $0.06 per Share Plus $300K Pending Approval
Patriot Resources has successfully raised $2.2 million through an oversubscribed share placement, signaling strong investor confidence as it advances exploration in Zambia and other projects.
- Raised $1.9 million via placement at $0.06 per share
- Additional $300,000 raised subject to shareholder approval
- 31.6 million new shares issued plus 6 million broker options proposed
- Funds earmarked for Katwaro Copper-Gold drilling and Sugarloaf due diligence
- Strong support from existing and new institutional investors
Oversubscribed Placement Highlights Investor Confidence
Patriot Resources Limited (ASX: PAT) has announced a successful capital raising effort, securing approximately $2.2 million through an oversubscribed share placement. The initial tranche raised $1.9 million by issuing over 31.6 million shares at a price of six cents each, reflecting robust demand from both existing shareholders and new institutional and high-net-worth investors. This enthusiasm underscores market confidence in Patriot’s strategic direction and exploration potential.
Strategic Use of Funds to Advance Key Projects
The freshly raised capital is earmarked primarily for advancing drilling activities at the Katwaro Copper-Gold Project in Zambia, a flagship asset for Patriot. Additionally, funds will support ongoing exploration efforts, due diligence on the Sugarloaf option, and general working capital needs. This allocation signals the company’s commitment to progressing its resource base and unlocking value for shareholders.
Shareholder Approval Pending for Additional Shares and Broker Options
To accommodate strategic investors and minimize dilution for existing shareholders, Patriot has proposed an additional $300,000 raise through the issue of 5 million shares, pending shareholder approval. Alongside this, 6 million broker options exercisable at $0.09 each over two years are also subject to approval. These measures aim to balance capital needs with shareholder interests, though final outcomes remain contingent on upcoming votes.
Broker Support and Market Implications
The placement was jointly managed by CPS Capital Group Pty Ltd and Foster Stockbroking Pty Ltd, reflecting strong broker confidence in Patriot’s prospects. The oversubscription and participation by strategic investors may enhance the company’s market profile and liquidity. However, investors will be watching closely for the shareholder meeting results and subsequent exploration updates to gauge the impact on share value and project progress.
Bottom Line?
Patriot’s oversubscribed raise sets the stage for intensified exploration, but shareholder approvals will be pivotal to unlocking the full $2.2 million funding.
Questions in the middle?
- Will shareholders approve the additional $300,000 placement and broker options?
- How will the new capital accelerate drilling results at Katwaro and exploration at Sugarloaf?
- What impact will the increased share count have on Patriot’s share price and investor sentiment?
