Piche Raises $2M at 9.7% Premium with 11.76M Shares and Free Options
Piche Resources has successfully raised approximately AUD 2 million through an oversubscribed placement, attracting strong institutional interest and issuing free attaching options to support its Argentine exploration projects.
- Raised AUD 2 million via placement at a 9.7% premium
- Issued 11.76 million new shares with free attaching options
- Strong demand from Australian and European institutional investors
- Funds earmarked for Argentine exploration and working capital
- Placement led by H&P Advisory Pty Ltd with 6% fee on gross proceeds
Strong Institutional Backing for Capital Raise
Piche Resources Limited (ASX – PR2) has announced a successful capital raising effort, securing approximately AUD 2 million through an oversubscribed placement of new shares. The placement was priced at AUD 0.17 per share, representing a notable 9.7% premium to the company’s last closing price, signaling robust investor confidence in the company’s prospects.
Strategic Funding for Argentine Exploration
The funds raised will be directed primarily towards advancing exploration activities across Piche’s portfolio in Argentina, a region known for its mineral potential but also requiring significant investment to unlock value. Alongside exploration, the capital will support general working capital needs and cover costs associated with the placement itself.
Incentivising Investors with Attaching Options
In addition to the new shares, the company issued free attaching options exercisable at AUD 0.25 each until May 2027. This structure not only sweetens the deal for investors but also provides Piche with potential future capital inflows if these options are exercised, aligning investor interests with the company’s long-term growth ambitions.
Geographic and Institutional Reach
The placement attracted strong demand from both Australian and offshore institutional investors, including those from Europe. This international interest underscores growing confidence in Piche’s strategy and the appeal of its Argentine exploration projects. The placement was managed by H&P Advisory Pty Ltd, which will receive a 6% fee on the gross proceeds and any options exercised, reflecting a standard arrangement for such capital raises.
Looking Ahead
Managing Director Karilyn Farmer expressed satisfaction with the oversubscribed placement and the premium pricing achieved, highlighting the company’s strengthened institutional shareholder base. As Piche moves forward, the market will be watching closely for updates on exploration progress and how effectively the new capital translates into tangible project milestones.
Bottom Line?
Piche’s oversubscribed placement not only fuels its Argentine ambitions but also signals growing investor appetite for its exploration story.
Questions in the middle?
- What specific exploration targets will the new funds prioritize in Argentina?
- How might the exercise of attaching options impact future capital structure and share dilution?
- What are the anticipated timelines for key exploration milestones following this capital raise?
