Copper and gold explorer Helix Resources (ASX:HLX) is tapping existing shareholders to raise $2.3 million via a renounceable entitlement offer in order to test six highly-prospective targets within its project located in the Cobar region of NSW.
The rights issue consists of a one-for-three offer with an issue price of 0.3 cents per new share representing a 40% discount to Helix’s last closing price of 0.5 cents.
Helix Executive Chair, Michael Rosenstreich said the decision to raise funds via a rights issue at an attractive discount was strategic in order to prioritise existing shareholders.
Mr Rosenstreich also confirmed he intended to take up all of his entitlements.
The rights issue is underwritten to $1.5 million by Lead Manager, Mahe Capital.
Funding will assist the company in testing its targets which have been developed using a geological database which combines a series of advanced exploration activities, including broad-scale geochemical, geophysical and electromagnetic surveying.
Drilling is planned to commence in May 2024.
Commenting on the raising and upcoming exploration activity, Mr Rosenstreich said:
“This fundraising enables a decisive drill program to test a series of new copper targets which is the culmination of several years’ target generation work.
Our confidence in the targeting has grown in recent months with the novel application, for this style of mineralisation, of established geophysical survey techniques highlighting unrecognised potential in the immediate vicinity of our Canbelego Copper Mineral Resource as well as other new targets along this mineralised Rochford copper trend.
This fund-raising structure is designed to prioritise our existing shareholders and I encourage them to seriously consider this opportunity and to contact the Company if they have any questions.”
Helix possesses a sizable ground position across three tenement groups which are largely untested despite being located within ~50km of significant copper producing operations.
The western tenements consist of 30km of contiguous strike of the Rochford Copper Trend and the Company is advancing a pipeline of wholly owned copper opportunities, which includes the Canbelego JV Project (70% owned and operated by Helix and 30% owned by Aeris Resources) where a Mineral Resource of 32.8kt of contained copper has been estimated.
The eastern tenement group encompasses more than 150km of prospective strike south of Aeris’ Tritton Copper Operations and includes the 100% owned high-grade CZ copper project.
