Bastion to Raise $677,721 via 677 Million Shares at $0.001 Each
Bastion Minerals Limited has announced a non-renounceable pro-rata rights issue to raise approximately $677,721 at a 50% discount to the last trading price. The funds will support ongoing project evaluation and working capital needs.
- Non-renounceable rights issue of ~677.7 million shares at $0.001 each
- Offer price represents a 50% discount to last closing price
- Funds to be used for Canadian, Chilean, and Australian project evaluation and working capital
- Offer fully underwritten with potential dilution of up to 42.86%
- Company expects capital sufficiency until October 2025 but needs further funding thereafter
Rights Issue Details
Bastion Minerals Limited (ASX – BMO) has launched a non-renounceable pro-rata rights issue, offering approximately 677.7 million new shares at an issue price of $0.001 per share. This price represents a significant 50% discount to the company's last closing share price of $0.002 on 17 June 2025. Eligible shareholders are entitled to subscribe for three new shares for every four shares held as of the record date, 23 June 2025.
Purpose and Use of Funds
The capital raising aims to generate up to $677,721 before costs. The proceeds will primarily fund the continuation of project evaluation and exploration planning across Bastion’s key assets in Canada, Chile, and Australia. Specifically, $250,000 is earmarked for advancing Canadian and Chilean projects, $200,000 for due diligence on Australian projects, with the remainder allocated to working capital and offer-related expenses.
Capital Structure and Dilution
If fully subscribed, the rights issue will increase the total shares on issue from approximately 903.6 million to 1.58 billion, diluting existing shareholders by about 42.86%. The offer is fully underwritten by a group of underwriters including Muskett, King, Rutherford, and Sail & Steam, which provides a safety net for the company to secure the targeted funds. However, the underwriting arrangement also means that underwriters’ voting power could increase depending on subscription levels.
Financial Position and Outlook
Pro forma financials indicate that the company’s cash reserves will increase to approximately $929,836 post-offer, providing sufficient capital to fund operations until October 2025. Beyond that, Bastion Minerals acknowledges the need for additional funding to continue its business strategy. The company’s exploration activities remain speculative and subject to the usual risks of mineral exploration, including regulatory approvals, commodity price volatility, and operational challenges.
Risks and Considerations
The company highlights several key risks for investors, such as the inherent uncertainties in mineral exploration, potential delays or failures in tenement approvals, fluctuations in gold and copper prices, and environmental and climate change risks. Additionally, the company’s future viability depends on securing further capital beyond this rights issue, which may dilute shareholders further or impose operational constraints.
Bottom Line?
Bastion Minerals’ rights issue offers shareholders a discounted entry point but underscores the company’s ongoing need for capital to advance its exploration ambitions.
Questions in the middle?
- What will be the uptake rate among eligible shareholders for the rights issue?
- How will commodity price fluctuations impact Bastion’s project valuations post-funding?
- What are the company’s plans for securing funding beyond October 2025?
