The Evolution Mining Ltd (ASX: EVN) share price is edging higher during early morning trade. This comes after the gold miner provided investors with its Share Purchase Plan (SPP) information booklet today.
At the time of writing, Evolution shares are fetching $4.22 apiece, up 0.60%.
Evolution begins SPP offer
Investors appear upbeat on the company’s latest update to the ASX, sending Evolution shares slightly higher.
According to its release, Evolution advised it has opened its Share Purchase Plan (SPP) to all eligible shareholders. This comes after the company completed a $400 million institutional placement last week.
The SPP aims to raise an additional $50 million through the issue of new fully-paid ordinary shares.
Evolution notes that investors can apply for a minimum of $2,500 to a maximum of $30,000 worth of shares. However, it might accept oversubscriptions or scale back applications at its discretion based on the result of the SPP.
Shareholders will be able to purchase the shares at the institutional placement price of $3.85 per share or at a 2.5% discount to Evolution’s five-day volume-weighted average share price at the closing date of 20 August.
Recently, the funds that Evolution received from the institutional placement were put towards the acquisition of several strategic assets. They included the following:
- 100% interest in the Kundana Operations
- 51% interest in the East Kundana Joint Venture
- 100% interest in certain tenements comprising the Carbine Project
- 75% interest in the West Kundana Joint Venture
Monies collected from the SPP will be used for general corporate purposes.
The shares from the SPP are expected to be issued to participating shareholders on or around 27 August 2021.
About the Evolution share price
Over the past 12 months, the Evolution share price has been a mixed bag, moving sporadically across its 52-week range. The company’s shares are down almost 30% since this time last year, and 2021 losses currently sit at 20%.
Based on today’s price, Evolution commands a market capitalisation of $7.14 billion, with approximately 1.8 billion shares outstanding.