Helix Resources’ (ASX:HLX) proposed rights issue seeking to raise $2.3 million has closed heavily oversubscribed.
After a surge of interest, the issue raised $2,323,146 and additional $500,000 was also accepted via a placement to accommodate some of the excess demand.
Funds raised will be used towards a drill campaign, currently underway, targeting highly prospective IP anomalies at the company’s Canbelego copper project, located in the Cobar-Nyngan area of central NSW. The Canbelego Joint Venture project is located within EL61053, part of Helix’s Western Group Tenements.
“On behalf of the Board, I would like to thank all shareholders who have participated in this rights issue and welcome new shareholders to the register,” Helix’s Chair, Mike Rosenstreich, said.
“The structure and pricing of this offer was specifically to give existing shareholders ‘first priority’, whilst ensuring, through the underwriting that we would have the funding to ‘go drilling’.
“There was significant demand, approximately double what we were seeking, so in a disciplined fashion we elected to take an additional half million via a Placement. This is a very good outcome for shareholders reflected in the performance of the share price, the active Rights trading and the strong demand and we thank Mahe Capital for their support.”
Managing Director, Dr Kylie Prendergast, said the Helix team now has sufficient funding to advance its copper and gold exploration strategy in the proven Cobar district.
“The first step will be to grow our existing copper resource by exploring a high-conviction target near to the existing high-grade Canbelego Mineral Resource,” Dr Prendergast said.
“Drilling has started at this ‘far’ Western Canbelego target which is the largest and strongest IP anomaly we have identified to date. Could this possibly be a multi-lode, CSA style of deposit? With potential new discoveries and emerging gold targets we anticipate strong news flow and value creation for our shareholders.”
