Blackstone Minerals Opens $2M Share Purchase Plan at 9% Discount
Blackstone Minerals has launched a $2 million Share Purchase Plan at a 9% discount, running alongside a $22.6 million placement to institutional investors. Eligible shareholders in Australia and New Zealand can buy shares up to $30,000, supporting the company’s Mankayan Copper-Gold Project expansion.
- Share Purchase Plan offers shares at $0.078, a 9% discount to recent VWAP
- Plan aims to raise up to $2 million alongside $22.6 million institutional placement
- Eligible shareholders in Australia and New Zealand can invest up to $30,000
- Funds directed to drilling and exploration at Mankayan Copper-Gold Project
- Plan is non-underwritten with potential scale-back or oversubscription acceptance
Capital Raising Strategy
Blackstone Minerals Limited (ASX, BSX) has unveiled a Share Purchase Plan (SPP) designed to complement a recent $22.6 million placement to sophisticated and institutional investors. The SPP offers eligible shareholders in Australia and New Zealand the chance to purchase additional shares at $0.078 each, representing a 9% discount to the volume weighted average price over the prior five trading days. This initiative aims to raise up to $2 million, providing retail investors a direct stake in the company’s growth trajectory.
Shareholder Participation and Terms
Eligible shareholders registered as of 1 July 2025 can invest between $2,000 and $30,000 without brokerage fees, regardless of their current holding size. The offer is non-renounceable, meaning shareholders cannot transfer their rights to others. Blackstone reserves the right to accept oversubscriptions or scale back applications to manage the total capital raised, with final decisions resting with the board. The maximum number of shares to be issued under the plan is capped at approximately 413.5 million, in line with ASX Listing Rules.
Use of Funds and Project Focus
Proceeds from both the placement and the SPP will primarily fund an ambitious 50,000-metre drilling program, alongside geophysical surveys and metallurgical studies at the Mankayan Copper-Gold Project. This project remains central to Blackstone’s exploration strategy, with the capital injection expected to accelerate resource definition and technical work. Additional funds will support general working capital needs, underpinning operational flexibility.
Market Context and Investor Considerations
The share price discount offered under the SPP reflects a common approach to incentivize shareholder participation while balancing dilution concerns. However, investors should be mindful that the market price may fluctuate between the offer announcement and share issuance, potentially affecting the value of their investment. The plan is not underwritten, which introduces some uncertainty regarding the total funds raised. Shareholders are advised to seek independent financial advice before participating.
Next Steps and Timelines
The SPP opened on 9 July 2025 and will close on 23 July 2025, with shares expected to be issued by 30 July. Blackstone will announce the results shortly after the closing date. The company’s board retains discretion to modify or terminate the plan if necessary, ensuring compliance with regulatory requirements and shareholder interests.
Bottom Line?
Blackstone’s dual capital raise underscores its commitment to advancing Mankayan, but shareholder uptake will be key to fully funding its ambitious exploration agenda.
Questions in the middle?
- Will shareholder demand meet or exceed the $2 million target under the Share Purchase Plan?
- How might potential scale-backs affect individual investor allocations and overall capital raised?
- What impact will the combined $24.6 million capital raise have on the timeline and scope of Mankayan’s drilling program?