PERTH - Celsius Resources Limited (ASX, AIM:CLA), a mining company, has announced that Silvercorp Metals Inc . (TSX: NYSE:SVM, NYSE: SVM), a substantial shareholder, has exercised its participation right in the company's recent AIM placement. The exercise of this right has led to the signing of a binding subscription agreement to raise an additional £42,855 before costs.
The agreement, which follows the successful completion of an AIM placement that raised approximately £350,000, will see Silvercorp subscribe for 10,713,951 new Celsius shares at £0.004 each, the same price as the AIM Placement shares. Additionally, Silvercorp will receive 5,356,976 unlisted warrants exercisable at £0.005 each, expiring on December 31, 2026.
The new shares and warrants will be issued under Celsius's existing placement capacity, as per ASX Listing Rules 7.1, with settlement expected to occur today. These shares, along with the Implementation Fee Shares, will rank pari passu with all existing ordinary shares in the company and are anticipated to be admitted to trading on AIM today as well.
Celsius Resources plans to use the proceeds from this subscription agreement to advance its corporate and operational strategy, including providing general working capital.
This financial move comes after Celsius Resources entered into an agreement with Silvercorp on May 15, 2023, which granted Silvercorp the opportunity to participate in future equity offers for a period of two years, provided their interest in Celsius does not fall below 10%.
The information in this article is based on a press release statement from Celsius Resources Limited.
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