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S2 Resources raising capital

S2 Resources raising capital

Roger Davies, Ashurst

S2 Resources is raising up to $12.1 million through a placement and share purchase plan, with advice from a global firm.

Firm: Ashurst (S2 Resources Limited)

Deal: S2 Resources Limited issued a placement and share purchase plan.

Value: $12.1 million

Area: Equity capital markets

Key players: The Ashurst team was led by corporate partner Roger Davies (pictured).

Deal significance: S2 Resources Limited (S2) issued a placement and share purchase plan to raise up to $12.1 million to strengthen its balance sheet, allow it to accelerate its ongoing exploration activities and for general corporate purposes.

S2 made a $9.1 million placement to institutional investors with an issue price of $0.40 per share.

Hartleys Limited was the lead manager and Bell Potter Securities Limited was the co-manager of the placement.

The bookbuild was heavily over-subscribed and settlement of the placement was expected to occur on 2 August 2016.

Eligible shareholders were also offered the opportunity to participate in the share purchase plan and subscribe for new shares at $0.40 per share up to the value of $15,000.

The share purchase plan was capped at $3 million and is not underwritten, with shares pursuant to the SPP to be issued on or about 22 August 2016.

After the completion of the capital raising S2 will be well funded, with a cash balance of up to approximately $27.5 million.

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