The Aeris Resources Ltd (ASX: AIS) share price has come out of a trading halt, putting itself in fine form today. This follows the copper and gold miner's update on its recent capital raising efforts.
At the time of writing, Aeris Resources shares are travelling 7.32% higher to a multi-year high of 22 cents.
What did Aeris Resources announce?
According to its release, Aeris Resources announced it has successfully completed an institutional placement to raise approximately $50.4 million. The offer received strong support from both new and existing institutional and sophisticated investors.
The placement will see around 287.9 million new ordinary shares issued at a price of 17.5 cents apiece. This represents a discount of 14.6% on the last closing share price of 20.5 cents on 9 June 2021.
Aeris Resources 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 will be used to accelerate the company's exploration activities at its Tritton and Cracow operations. This includes expanding its current exploration drilling program and covering general working capital expenses.
Aeris executive chair, Andre Labuschagne commented:
This is an exceptional outcome for Aeris and its shareholders and provides the balance sheet strength to accelerate exploration at both our operations in FY22, while progressing in parallel, life extension projects at Tritton.
In FY22 we will continue development of the Budgerygar underground mine. We are also finalising plans to commence development of Avoca Tank (underground) and a cut-back of the open pit at Murrawombie.
The strong institutional support for the Placement I believe is a reflection of not only the transformation of the Company over the last 12 months but also an endorsement of our strategy focusing on copper and gold and adding value through organic and acquired growth.
Aeris Resources share price summary
Investors have rallied in joy with Aeris Resources shares climbing to an astonishing 500% in the last 12 months. The company's share price reached a multi-year high of 22 cents today on the back of its strong gains over the past 30 days.
Aeris Resources commands a market capitalisation of roughly $422 million, with more than 1.9 billion shares outstanding.
