Minotaur Exploration Ltd (ASX:MEP) has scaled back its share purchase plan (SPP) after receiving applications for $3.4 million while the target was to raise $1 million only.
Following the strong support from shareholders, Minotaur has decided to increase the size of SPP to $2.1 million, which it plans to spend on the companys fully-owned Australian projects.
“Very gratifying result”
Minotaur chairman Roger Higgins said: “This is a very gratifying result, replicating the recent over-subscribed Placement and signifying shareholders confidence in the company and its suite of projects.
“Minotaur will work to invigorate its wholly-owned portfolio and the Board looks forward to realising their potential.”
The company has decided to allocate shares to at least 75% of the subscriptions from eligible shareholders with a holding of 10,000 shares or more.
Accordingly, Minotaur will allot 42.3 million new shares at a price of 5 cents a share to raise a total of $2.1 million, which will be in addition to the $4.05 million raised through the recently completed placement.
Allotment of the new securities is scheduled on September 28, 2020, and application funds exceeding those retained from each shareholder will be returned in line with the stated scale back policy by mail on October 1, 2020.