How Bastion Minerals’ $500K ATM Deal Could Shape Its Funding Future
Bastion Minerals has entered a three-year At-The-Market subscription agreement with Dolphin Corporate Investments, unlocking up to $500,000 in standby equity capital with minimal dilution and full control over issuance timing.
- Up to $500,000 standby equity capital over three years
- Flexible At-The-Market (ATM) subscription agreement with no attached options
- Bastion controls timing, pricing floor, and usage discretion
- 3 million shares issued as security to Dolphin Corporate Investments
- No obligation to utilize the facility and option to terminate anytime
Bastion Minerals Taps Flexible Capital Source
Bastion Minerals Ltd (ASX, BMO) has taken a strategic step to bolster its financial flexibility by entering into an At-The-Market (ATM) subscription agreement with Dolphin Corporate Investments (DCI). This arrangement provides Bastion with access to up to $500,000 in standby equity capital over the next three years, offering a cost-effective and adaptable funding option that aligns with the company’s operational needs.
Control and Minimal Dilution
Unlike traditional equity placements that often come with attaching options or rights, Bastion’s ATM facility is designed to minimise shareholder dilution and maximise company control. Bastion retains full discretion over when and how much capital to raise, including setting a minimum issue price floor. The final share price for any issuance will be the higher of the company’s nominated floor price or up to a 4.4% discount to a volume weighted average price (VWAP) over a chosen period. This flexibility allows Bastion to time capital raises to market conditions, potentially reducing the cost of capital.
Security and Governance Measures
As part of the agreement, Bastion has issued 3 million fully paid ordinary shares to Dolphin as security, sourced from its ASX Listing Rule 7.1 capacity at nil cash consideration. These shares may be bought back and cancelled upon early termination or maturity of the ATM facility, subject to shareholder approval. This arrangement underscores Bastion’s commitment to responsible capital management and shareholder value preservation.
Leadership Perspective and Policy Framework
Non-Executive Chairman Gavin Rutherford emphasised the strategic fit of the ATM facility, highlighting its operational control and efficiency benefits. He noted that Bastion has developed a comprehensive ATM usage policy to govern the facility’s deployment responsibly, which is publicly available on the company’s website. This policy framework is critical to ensuring that the facility supports Bastion’s long-term growth objectives without compromising shareholder interests.
Looking Ahead
While the ATM agreement does not obligate Bastion to raise capital, it equips the company with a nimble tool to respond to funding needs as they arise. Investors will be watching closely for any future announcements regarding the utilisation of this facility and its impact on Bastion’s capital structure and exploration ambitions.
Bottom Line?
Bastion’s new ATM facility offers a flexible capital lifeline, but its prudent use will be key to maintaining shareholder confidence.
Questions in the middle?
- When and under what conditions might Bastion choose to utilise the ATM facility?
- How will the issuance of shares as security affect shareholder dilution if the facility is drawn upon?
- What specific projects or operational needs might the company fund through this standby capital?
