11 Apr 2018capital raising announcement▲ GoodMajor
Avrupa signed a non-binding letter of intent (March 5, 2018) with a subsidiary of an unnamed international mining company to option out three Portugal Pyrite Belt licences (Alvalade, Marateca, Mertola). The partner would fund a first-stage earn-in of EUR 13 million (about C$20.3 million) over three years for 51%, with further steps to 60-75% depending on the licence; final agreements were still being negotiated. This follows the Alvalade partner Colt's default and the plan to option out Marateca, though the filing does not mention Colt or say what happened to its interest. Avrupa also arranged a $500,000 private placement of 6.25 million units at $0.08, each with a warrant at $0.12 for two years, announced as fully subscribed on March 16 and, per the March 26 release title, increased and closed (that release's text was not provided, so final size and closing terms are unknown). It also granted 1.8 million stock options at $0.10 for five years. Proceeds are for exploration in Portugal and Kosovo and working capital. The releases list the Alvito option as being with OZ Minerals (replacing the earlier plan to find a new partner after Lowell Copper left); its terms are not given. Becau
What it means for a shareholder
6.3m new shares at C$0.080 to raise about C$500,000. That's 6.7% dilution: every existing holder's slice gets 6.7% smaller. If you held C$1,000 of shares (12,500 at the issue price), your slice goes from 0.0144% to 0.0134% of the company. To keep it you'd need 899 more shares - about C$72 at the issue price.
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