MinRex Issues 97.6 Million New Options, Raises $97,581 in Entitlement Offer
MinRex Resources has closed its pro-rata non-renounceable entitlement option offer, raising $97,581 with a significant shortfall still available for subscription over the next three months.
- Loyalty Option Offer closed on 7 February 2025
- Raised $97,581 from 97.6 million new options issued
- Shortfall of options remains open for up to three months
- New options exercisable at $0.02, expiring in 2030
- Funds to support exploration at Sofala Gold Project in NSW
Entitlement Offer Closes with Partial Uptake
MinRex Resources Limited (ASX: MRR) has announced the completion of its pro-rata non-renounceable entitlement option offer, known as the Loyalty Option Offer, which closed on 7 February 2025. The offer allowed eligible shareholders to subscribe for one new option for every four shares held, at a nominal price of $0.001 per option. These options are exercisable at $0.02 and expire on 20 January 2030.
Despite the opportunity to raise up to $271,217 through the issuance of 271.2 million new options, MinRex received applications for only 97.6 million options, raising approximately $97,581 before costs. This uptake represents just over a third of the total available options, leaving a substantial shortfall.
Shortfall Offer Remains Open
The company has confirmed that the shortfall options not taken up by shareholders will be offered for subscription over the next three months. This extended period provides an opportunity for MinRex to attract additional capital, which is critical for advancing its exploration programs.
The new options issued today will be officially quoted on the ASX starting 18 February 2025, providing liquidity and tradability for shareholders who participated in the offer.
Strategic Implications for MinRex
MinRex is an Australian gold and base metals explorer with a portfolio focused on the Lachlan Fold Belt in New South Wales, including the Sofala Gold Project, which hosts a JORC 2012-compliant resource of 352,000 ounces of gold. The capital raised through this entitlement offer, albeit modest relative to the maximum raise, will support ongoing exploration and development activities at Sofala and other projects.
The partial take-up of the offer may reflect shareholder caution or differing views on the company’s near-term prospects. However, the availability of the shortfall options for an additional three months offers a window for the company to secure further funding without immediate dilution to existing shareholders.
MinRex’s management, led by Ian Shackleton, will likely focus on leveraging this capital to advance drilling programs and potentially attract strategic partners or investors to bolster the company’s position in a competitive exploration landscape.
Bottom Line?
MinRex’s next challenge will be converting the shortfall into meaningful capital to sustain its exploration momentum.
Questions in the middle?
- Will MinRex successfully place the shortfall options within the next three months?
- How will the partial uptake affect shareholder confidence and future capital raising efforts?
- What are the company’s immediate exploration plans funded by this capital injection?
