Following a recent successful placement on the Alternative Investment Market (AIM) that brought in £922,000 before costs for Celsius Resources Ltd (ASX:CLA, AIM:CLA), substantial shareholder Silvercorp Metals has opted to exercise its participation right, raising an extra £117,317.
Funds for development works
Funds from this additional subscription by Silvercorp will be directed towards the company's Philippines projects, including early development works at the MCB Copper-Gold Project, permitting costs at the Sagay Copper-Gold Project, exploration at the Botilao Copper-Gold Prospect and general working capital needs.
A binding subscription agreement between the two companies allowed Silvercorp to subscribe on equivalent terms with other participants in the placement.
The agreement follows Celsius's commitment made on May 15, 2023, which allows Silvercorp to partake in future equity offers provided they maintain at least a 10% interest in Celsius.
Silvercorp will acquire Celsius shares
Under the terms of the agreement, Silvercorp will acquire 19,552,752 new shares of Celsius at a price of £0.006 each.
Additionally, Silvercorp will receive one free-attaching unlisted warrant for every share purchased, exercisable at £0.009 each until December 31, 2026.
The expected settlement date for this transaction is around April 19, with the new shares anticipated to be admitted to trading on AIM around April 25.