The Helix Resources Ltd (ASX: HLX) share price is one of the best performers on the ASX today. This follows the mineral exploration company's update on its recent capital raising efforts.
At the time of writing, Helix shares are swapping hands for 4.4 cents, up 41.94%. It's also worth noting that the company's share price hit a multi-year high of 4.5 in early afternoon trade.
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What did Helix announce?
Investors are fighting to get a hold of Helix shares after the company provided an update on its placement.
According to its release, Helix advised it has received binding commitments to raise $4.03 million by way of placement. Furthermore, approximately 149.4 million new ordinary shares will be issued at 2.7 cents each to participating institutional and sophisticated investors. This represents a discount of 13% on the last closing price of 3.1 cents per share.
The company will use its existing placement capacity to create new shares. Under listing rule 7.1, this allows up to 15% of its shares to be issued without shareholder approval.
Therefore, funds raised from the placement will be allocated towards the company's aggressive drilling program at the Canbelego and CZ projects. High-grade copper mineralisation is also being targeted on its Cobar tenements in central New South Wales.
Settlement of the shares is expected to occur on 26 May 2021, with allotment the same day.
The lead manager of the placement, JP Equity Partners, will retain a 6% fee. In addition, the issue of 10 million options at a price of 5.4 cents with a 3-year expiry is also on offer.
Helix managing director, Mike Rosenstreich commented:
Our team is very excited to be able to lock-in an increased level of drilling. We now plan to have a drill rig on site virtually for the remainder of the year testing extensions to the known high-grade copper mineralisation as well as regional scale drilling to advance some of the targets reinforced by the recent airborne geophysical survey. The next six months will not be dull!
Helix share price review
Over the past 12 months, Helix shares have stormed close to 650% higher, reflecting positive investor sentiment. Year-to-date performance has also increased to post a gain of 340%.
Based on valuation grounds, Helix commands a market capitalisation of roughly $48 million, with over 1 billion shares on issue.
