NSM's proposed capital raising and entitlement offer

North Stawell Minerals Ltd (NSM) (ASX:NSM) has announced a proposed capital raising of approximately $1.1 million through a 4 for 5 fully underwritten, non-renounceable, pro-rata entitlement offer at an issue price of $0.01 per share. The Entitlement Offer is expected to close on Monday, 14 October 2024. The company has provided an Offer Booklet for the Entitlement Offer, a sample letter, and a sample Entitlement and Acceptance Form for eligible shareholders. The funds raised will be used for further exploration and drilling at NSM's gold exploration assets and general working capital.

Executive commentary on the capital raising and entitlement offer

The Sub-Underwriting Agreement with C&P is on standard terms and conditions, and C&P will not receive any fee for acting as sub-underwriter. NSM expects to issue New Shares on 21 October 2024, subject to obtaining permission for their quotation on ASX. The New Shares will be fully paid and will rank equally with existing Shares when issued. The purpose of the Equity Raising is to fund further exploration drilling programs at Wildwood and Darlington-Caledonia, provide working capital, and cover the costs of the Equity Raising. The proceeds from the Entitlement Offer, before costs and expenses, are expected to amount to approximately $1.1 million if fully subscribed.

Summary of NSM's capital raising announcement

North Stawell Minerals Ltd (NSM) has announced a non-renounceable pro-rata entitlement offer to raise approximately $1.1 million. The offer is fully underwritten by Henslow Pty Ltd and fully sub-underwritten by C&P Entities Pty Ltd. The offer price for the new fully paid ordinary shares is $0.01 per share. Eligible shareholders are entitled to subscribe for 4 new shares for every 5 existing shares held at the record date. The offer opens on September 30, 2024, and is scheduled to close on October 14, 2024. Shareholders who are not eligible to participate will have their new shares sold by a nominee appointed by the company, and they will receive the proceeds, if any, net of applicable withholding tax and expenses. The company aims to raise funds for exploration drilling programs, working capital, and the costs of undertaking the entitlement offer. The offer is being made pursuant to section 708AA of the Australian Corporations Act 2001, and no prospectus or disclosure document needs to be prepared. North Stawell Minerals Ltd is an Australian-based gold exploration company focused on discovering large-scale gold deposits in the highly prospective Stawell Mineralised Corridor in Victoria.