$2 Million Share Subscription AgreementOctober 07, 2014
Drilling Contractor Backs Stavely Through Share Subscription Agreement
$2M agreement set to underpin delivery of up to $4M of drilling over next 12 months
Stavely Minerals Limited (ASX Code: SVY – ‘Stavely Minerals’) is pleased to announce that it has secured the ongoing support of its Victorian drilling contractor, Titeline Drilling Pty Ltd (‘Titeline Drilling’), through a $2 million Share Subscription Agreement which will substantially increase the amount of drilling metres available for its flagship copper-gold and VMS projects in Western Victoria.
Under this agreement, Titeline Drilling has agreed to subscribe for up to $2 million of shares, with Stavely Minerals having the option to settle monthly drilling charges by way of 50% cash payment and 50% by way of offset of the price of subscription application for shares.
The subscription price for each subscription application made will be based on the lower of a 5-day and 10-day VWAP of Stavely Minerals’ shares as at the date of each application. It is anticipated that the subscriptions will take place over the next 12 months.
Titeline Drilling is a drilling services company based in Ballarat which has provided drilling services to Stavely Minerals at both its Ararat VMS and Stavely Porphyry Copper-Gold Projects since the Company’s inception. The funds raised under these share issues will be used to fund drilling.