What's Happening?
Helix Resources has announced a renounceable entitlement offer to raise approximately $1.68 million for its upcoming drilling campaign at the White Hills Project in Arizona, USA. The company plans to issue shares at a price of $0.001, which is a 50% discount from the last closing price and a 44.4% discount from the 30-day volume weighted average price. The offer is set to open on August 20 and close on September 3. Mahe Capital is leading the management of the offer and is partially underwriting it for up to $500,000. Helix directors, including non-executive director Kylie Prendergast and executive Chair Michael Povey, have expressed interest in participating in the offer. The funds will also be used to streamline a resource estimate for the nearby Gold Basin Project, which has shown potential for a substantial resource upgrade following recent drilling.
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Why It's Important?
The fundraising initiative by Helix Resources is crucial for advancing its exploration activities in Arizona, particularly at the White Hills and Gold Basin Projects. The successful completion of the drilling campaign and resource estimation could significantly enhance the company's asset portfolio, potentially leading to increased investor interest and market value. The involvement of Mahe Capital as a lead manager and partial underwriter adds credibility to the offer, potentially attracting more investors. The participation of Helix's directors in the offer further underscores their confidence in the company's strategic direction and the potential of its projects.
What's Next?
Following the completion of the entitlement offer, Helix Resources will proceed with the drilling campaign at White Hills and the resource estimation at Gold Basin. The results from these activities could lead to a substantial upgrade in the resource estimates, which may attract further investment and partnerships. Stakeholders, including investors and industry analysts, will be closely monitoring the outcomes of these projects to assess their impact on Helix's market position and future growth prospects.
