The Nexus Minerals Ltd (ASX: NXM) share price has come out of a trading halt on Monday to reach a record high. This comes after the gold explorer announced an update on its recent capital raise.
At the time of writing, Nexus shares are up a sizeable 22% to an all-time high of 61 cents. In the past week alone, its shares have now risen more than 32%.
Nexus completes placement
Investors are buying up Nexus shares as the company seeks to progress its exploration activities at the Wallbrook Gold Project.
According to its announcement, Nexus said it has received firm commitments for its institutional placement to raise $19 million before costs. The company highlighted that it had strong support from both domestic and offshore institutional investors.
The offer will see approximately 41.3 million new ordinary shares issued at a price of 46 cents apiece. This represents an 8% discount to the last closing price of 50 cents on 10 November (before going into a trading halt).
The company will primarily use the proceeds to fund drilling activities at the Crusader-Templar prospect and other regional exploration activities.
In particular, the funds will be allocated to the following:
- Crusader-Templar Prospect reverse circulation and diamond drill programs;
- Solomon Prospect reverse circulation and diamond drill programs;
- Regional target generation and aircore, reverse circulation and diamond drill programs;
- Regional geophysical surveys; and
- General working capital.
Settlement of the new shares is expected to occur on Monday 22 November.
Nexus managing director Andy Tudor commented:
The proceeds from the placement will allow Nexus to expedite and ramp-up exploration programs at the Wallbrook Gold Project, where the company has been having exploration success at the Crusader-Templar Prospect in recent drill programs. To have achieved such a strong level of institutional and sophisticated investor support for the placement was very encouraging and a strong endorsement of the company's endeavours.
Nexus Minerals share price summary
Adding to today's gains, Nexus shares have pushed around 250% higher in the past 12 months. However, when looking at year-to-date, the company's shares are hovering around upwards of 370%.
Based on valuation grounds, Nexus presides a market capitalisation of around $150.46 million, with almost 247 million shares outstanding.
