Alvo Minerals Limited (ASX: ALV) has announced revisions to its previously announced pro-rata non-renounceable entitlement offer. The updated terms include a reduced issue price of $0.05 per new share, down from the original $0.06, to raise approximately $2.93 million before costs. Additionally, the exercise price of the new options has been lowered from $0.14 to $0.10 per option. The updated issue price represents a nil discount to the Company’s last closing price of A$0.50 per Share on 11 April 2025 and a 24.6 per cent discount to the 5-day VWAP of A$0.066 per Share.
The funds raised from the entitlement offer are earmarked for several key projects. A significant portion, $878,692 (30%), is allocated to continued exploration across Alvo’s existing project portfolio, including the Palma VMS Cu/Zn Project and the Bluebush and Ipora REE Projects. A larger share, $1,464,486 (50%), is designated for due diligence and the cash payment on completion of the definitive asset purchase agreement for the Lavra Velha Gold Project. $146,449 (5%) will go toward continued new project assessment and the remaining $439,346 (15%) towards working capital and expenses related to the entitlement offer.
Alvo Minerals has specified that the proposed acquisition of the Lavra Velha Gold Project may not proceed if due diligence fails to demonstrate its value to the Company. In such a scenario, funds will be reallocated to exploration at the Palma Project and new project assessments. The record date for eligible shareholders to participate in the Entitlement Offer is set for 7:00 pm on Thursday, 17 April 2025. Eligible shareholders are those with a registered address in Australia, New Zealand, Brazil, Singapore, the United Arab Emirates, the United Kingdom and the United States of America (in relation to institutional “accredited investors” only).
The updated indicative timetable outlines key dates, including the prospectus dispatch on Thursday, 24 April 2025, and the closing date on Tuesday, 6 May 2025. The announcement of the results of the Entitlement Offer and any shortfall is scheduled for Tuesday, 13 May 2025, with quotation of new shares expected on Wednesday, 14 May 2025.
