The Odyssey Gold Ltd (ASX: ODY) share price is storming higher during mid-morning trade following an update on its capital raise efforts.
At the time of writing, the gold miner's shares are up 7.4% to 14.5 cents.
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Odyssey Gold completes placement, initiates SPP
According to its release, Odyssey Gold advised it has successfully secured a commitment to raise $10 million (before costs) through a placement. The offer received strong support from both domestic and international institutional and sophisticated investors.
The placement will see 79.8 million new ordinary shares issued at a price of 12.5 cents apiece.
In addition, Odyssey Gold will launch a Share Purchase Plan (SPP) for eligible shareholders, under the same terms of the placement. The company is hoping to raise a further $5 million by the issuance of another 40 million ordinary shares. The SPP offer closes on 24 June 2021, with issue and quotation of the shares on 1 July 2021.
Odyssey Gold will use its existing placement capacity to create the new shares. Under listing rule 7.1, this allows up to an additional 15% of its total shares to be issued without shareholder approval.
The proceeds of the placement and SPP will be used to accelerate the company's Tuckanarra and Stakewell Gold Projects. This includes expanding its current exploration drilling program, whilst undertaking resource development drilling, and technical and metallurgical studies.
Odyssey Gold executive director, Matt Syme commented:
We are pleased with the strong support received for this Placement from existing and new investors. It reflects the exciting exploration potential of our two outstanding gold projects in the Murchison Goldfields.
Funds raised from the Placement will allow Odyssey to expedite exploration of our recent gold discoveries.
How has the Odyssey Gold share price performed?
Since listing on the ASX board in January, Odyssey Gold shares have jumped by more than 220%. The company's share price reached an all-time high of 22.5 cents earlier this month before dropping lower from profit-taking.
Odyssey Gold has a market capitalisation of roughly $63 million, with 452 million shares on its registry.
