$1.05M raised, entitlement offer launched to raise $3.9M.

Late last week our gold exploration Investment Tempus Resources (ASX:TMR) detailed its latest capital raise.

TMR raised a total of $1.05M via a placement at 5c per share with the shares expected to be issued on 3 August (this Wednesday).

TMR plans to use the cash to finance the ongoing drilling program at its Canadian gold project where the company has already drilled the first 14 of the planned 30 drillholes.

Investors who participated in the raise also got issued one free option for every share purchased. The options expire in three years and are exercisable at 7.5c per share.

We also saw the company announce an entitlement offer of up to $3.9M in new shares for existing shareholders, on the same terms and conditions as the placement.

We especially like that TMR has kept the placement portion of the raise small. and offered almost 4x more in shares to existing shareholders. With the share price trading at ~7c per share, the entitlement offer gives existing shareholders the opportunity to top up their shareholdings at a discount to the current market price for TMR.

Given where the company’s share price is trading, we like that TMR hasn’t solely reserved the placement for sophisticated investors.

The key dates for the entitlement offer are:

• Ex date 9 August 2022 - This is when TMR shares start trading on an ex-rights basis, meaning the rights will no longer apply if shares are purchased on or after this day.
  
  
• Record date 10 August 2022 - This is the date at which entitlements are calculated, i.e if you are a shareholder in TMR at this date then you get to purchase shares in the entitlement offer.
  
  
• Offer closing date 29 August 2022 - Last day to accept entitlement.
  
  
• Offer issue date 5 September 2022 - This is when the entitlement offer shares are expected to be issued.