Astro Resources completes $2.994 million capital raising to advance US and WA projects; appoints interim CEO

Astro Resources NL (ASX:ARO) has completed a A$2.994 million capital raising to sophisticated investors at A$0.04 per share, with one free attaching option at an exercise price of A$0.01 and an expiry date of April 21, 2022. The company has received funds totalling A$659,476 and binding applications for the balance. Proceeds will help fund further development of the company’s portfolio of three projects - Needles Gold Project in the US, Governor Broome Minerals Sands Project in WA and Lower Smoke Creek Diamond Project, also in WA. Ongoing support of key shareholders Chairman Jacob Khouri said: “We are delighted with the outcome of this capital raising led by Melbourne Capital, which demonstrates the ongoing support of key shareholders and sophisticated investors of Astro and its exploration and development strategy across the three principal projects. “The board is particularly excited by the fact that funding is in place to commence the execution of the Needles Gold Project drilling programs, progressing to a pre-feasibility study for the Governor Broome HMS Project, in addition to now having the capacity to undertake work at our diamond project in WA. “We are confident that positive news flow lies ahead of us across our dynamic portfolio of projects.” Two-tranche capital raise This capital raising is being conducted in two tranches: Tranche 1 – 498.9 million shares (issued out of Listing Rule 7.1 and 7.1A capacity). The free attaching option is subject to shareholder approval; and Tranche 2 – 249.6 million shares, issued subject to shareholder approval, expected to occur sometime in April 2021. Allotment of Tranche 1 is to occur when the funds are received, which is expected to be no later than Friday, March 26, 2021. Major shareholders Major shareholder Holdmark Property Group (via HPG Urban Developments Pty Ltd) has agreed to participate in the offer and has agreed to subscribe for 166 million shares under Tranche 2. If approved, Holdmark Property Group will retain its shareholding level at 19.9%, reinforcing its ongoing support for the company. Melbourne Capital Limited (MCL) led the capital-raising process. In addition, it has committed to provide ongoing corporate advisory services to the company for the next 12 months. Interim CEO appointed Astro has appointed Vince Fayad as interim chief executive officer following a significant increase to his leadership duties over the past 12 months, both corporately and at a project level. With more than 35 years’ experience, Fayad has strong ASX company experience, serving in roles including executive director, company secretary and chief financial officer of Greenvale Energy (now Mining) Limited (ASX:GRV) and European Lithium Limited (ASX:EUR) formerly known as East Coast Minerals. Khouri added: “Vince has an impressive track record of company success, having played a major role in his previous position on the board of Greenvale Mining, where he was heavily involved in the development of the company. “Over the last 12 months, Vince has assumed a greater leadership role in running Astro, overseeing the work programs being carried out across our portfolio of assets in Australia and the US and the company’s general corporate activities. “He is a great asset to the Astro team, and we are thrilled he has extended his role to that of Interim CEO.”