Lord Resources has completed its entitlement offer, raising $568,925 with a 40.82% take-up rate, leaving a significant shortfall of 45.8 million shares. The company plans to allocate the remaining shares to interested parties as it advances exploration at its Ilgarari Copper Project.
- Entitlement offer raised $568,925 at $0.018 per share
- 40.82% take-up rate from eligible shareholders
- Shortfall of 45,819,087 shares remains unallocated
- Directors have discretion to allocate shortfall within three months
- Funds aimed at progressing Ilgarari Copper Project exploration
Entitlement Offer Completion
Lord Resources Limited (ASX, LRD) has announced the completion of its pro-rata non-renounceable entitlement offer, issuing new shares at 1.8 cents each. The offer was structured to allow shareholders to acquire one new share for every existing share held, aiming to raise approximately $1.39 million before costs.
However, the company received applications for just over 31.6 million new shares, raising $568,925, significantly below the target. This equates to a take-up rate of roughly 40.82% from eligible shareholders, leaving a substantial shortfall of 45.8 million shares unallocated.
Implications of the Shortfall
The directors of Lord Resources now hold the discretion to allocate the remaining shortfall shares within three months. This flexibility allows the company to approach various parties who have previously expressed interest in taking up additional shares, potentially bringing in new investors or increasing stakes of existing ones.
While the shortfall indicates a muted response from shareholders, the company remains optimistic about securing further investment to support its exploration ambitions. The funds raised, though below initial expectations, will contribute to advancing the Ilgarari Copper Project, a key asset in Lord’s portfolio located in Western Australia.
Strategic Focus on Ilgarari Copper Project
Lord Resources is positioning itself to capitalize on future-facing metals, with copper exploration at Ilgarari being central to its strategy. The successful allocation of the shortfall shares could provide the necessary capital to accelerate exploration activities and potentially unlock value for shareholders.
CEO Andrew Taylor expressed gratitude to shareholders for their support and highlighted the company’s excitement about progressing the Ilgarari project. The next few months will be critical as the board decides on shortfall allocations and the company updates the market on exploration progress.
Bottom Line?
Lord Resources must now navigate shortfall allocations carefully to maintain momentum in its copper exploration ambitions.
Questions in the middle?
- Who will the directors approach to allocate the 45.8 million shortfall shares?
- How will the shortfall impact Lord Resources’ funding timeline for Ilgarari exploration?
- What are the potential dilution effects on existing shareholders if the shortfall is fully allocated?