Australia's Strike Resources drops on discounted share placement

Strike Resources

28/05/2021 05:23

** Shares of Strike Resources  SRK.AX  drop as much as 11.8%
to A$0.225
    ** Iron ore explorer raises A$5 mln ($3.87 mln) via
oversubscribed share placement  urn:newsml:reuters.com:*:nASX6cQ5P8
    ** Capital raising via issuance of 22.9 mln shares at issue
price of A$0.22/share, a discount of 13.7% to stock's closing
price of A40.255 on May 25, when it last traded 
    ** Adds that funds raised will be used to accelerate DSO
(direct shipping ore) production in Peru and advance its
Paulsens East project in Western Australia
    ** About 1.7 mln shares change hands, vs the 30-day average
volume of 942,000 shares
    ** Stock up 75.9% this year as of last close
    
  


($1 = 1.2920 Australian dollars)

 (Reporting by Harish Sridharan in Bengaluru)
 ((harish.sridharan@thomsonreuters.com))