Hong Kong-Based LC Capital Limited took a 20 million share placement in Argo Exploration Limited (ASX: AXT). AXT share price increased some 33.3% the same day. Jonathan Cheng appointed as Non-Executive Director.

2019-10-22 08:00 7790
  • AXT has announced the placement of 20 million shares to raise $400,000 AUD from LC Capital Limited ("LC").
  • AXT's price went up 33.3%. Trading for 1.6 cents apiece.
  • Jonathan Cheng has also been appointed as Non-Executive Director, effective immediately.

SYDNEY, Oct. 22, 2019 /PRNewswire/ -- AXT has announced the placement of 20 million fully paid ordinary shares at 2 cents per share (together with 5,000,000 options exercisable at 5 cents each with expiry 15th October 2021) from LC.

AXT is engaged in reviewing exploration and development of resource acquisitions and management of its investments. It operates as an explorer for base precious metals, with an emphasis on copper, gold and uranium mineralization within Australia. LC will be able to utilise AXT's network to potentially further both of LC's & AXT's business interests in multiple sectors, thereby creating more value for their shareholders.

The placement will provide AXT with funding to explore and further develop corporate opportunities currently available to AXT, whilst maintaining its significant interest in London listed oil & gas company Pantheon Resources Plc. Post placement, LC will hold a ~10% interest in AXT.

The placement was done at ~54% premium to the recent share price, reflecting the strategic nature of the investment by LC.

Concurrent with the placement, LC's CEO & Managing Partner, Mr Cheng has been appointed as Non-Executive Director of AXT with immediate effect.

Source: LC Capital Group Limited
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