APC Minerals Launches $1.5M Capital Raise Amid CEO Departure
APC Minerals Limited announces a $1.5 million capital raising through a placement and entitlement offer, alongside the planned exit of CEO Matthew Shackleton.
- Placement to raise $116,000 at 0.4 cents per share
- Renounceable pro rata entitlement offer targeting $1.38 million
- Yelverton Capital engaged as lead manager and intended underwriter
- Funds aimed at advancing Laverton Down and West Arunta Nexus projects
- Managing Director and CEO Matthew Shackleton to depart
Capital Raising Details
APC Minerals Limited (ASX, APC) has announced a capital raising initiative designed to inject approximately $1.5 million into the company. This comprises a modest placement raising $116,000 through the issuance of 29 million shares at a discounted price of 0.4 cents each, alongside a renounceable pro rata entitlement offer targeting an additional $1.38 million. The placement price represents a steep discount of nearly 60% to recent trading averages, reflecting the company’s urgent need for fresh capital.
Yelverton Capital has been appointed as lead manager for both the placement and entitlement offer, with plans to underwrite the entitlement offer subject to final agreement. The underwriting arrangement includes a fee structure combining management and selling fees, as well as an allocation of unlisted options, signaling Yelverton’s strong commitment to the raise.
Strategic Use of Funds
The funds raised will be directed towards advancing APC’s two key projects, the Laverton Down Project (LDP) and the West Arunta Nexus Project. The LDP, situated in Western Australia’s Eastern Goldfields, is strategically located along prolific gold trends hosting multiple significant deposits. Recent drilling has confirmed gold mineralisation over a strike length of about one kilometre, with deeper zones yet to be explored.
The West Arunta Nexus Project, an early-stage exploration venture, covers a large area in a region known for rare earth and critical mineral deposits. This project holds promise for sedimentary, IOCG, SEDEX, and carbonatite-hosted mineralisation, positioning APC to potentially tap into emerging critical mineral markets.
Leadership Transition
In a significant leadership change, Managing Director and CEO Matthew Shackleton will be departing the company. The board expressed gratitude for his contributions during a challenging period and indicated that the timing of his exit will be coordinated to ensure a smooth handover of responsibilities. Recruitment for a successor is expected to commence shortly, a move that could signal a strategic shift or renewed focus for APC as it navigates its next phase.
This leadership transition, coupled with the capital raise, underscores a pivotal moment for APC as it seeks to strengthen its financial position and advance its exploration agenda. Investors will be watching closely to see how the new leadership shapes the company’s direction and how effectively the raised capital is deployed.
Bottom Line?
APC’s capital raise and CEO exit mark a critical juncture as the company aims to unlock value from its promising projects.
Questions in the middle?
- Will the underwriting agreement with Yelverton Capital be finalized without changes?
- Who will be appointed as the new Managing Director and what strategic direction will they pursue?
- How will the market respond to the significant discount on the placement shares?
