Interra Resources has subscribed for 24,258,333 shares in Morella Corporation Limited for A$873,299.98 ($767,716.27), according to an Oct 17 release.
On Aug 5, Morella announced non-renounceable rights issue of approximately 123,576,552 new shares and 12,129,166 new options to its eligible shareholders.
Morella, which is listed on the Australian Securities Exchange, focuses on exploration and mineral resource development.
The group’s subscription, which represents approximately 8% of the enlarged issued share capital of Morella, was issued at a price of 3.6 Australian cents per share.
According to the group, Interra Resources is set to hold the new shares and options in Morella on behalf of its wholly-owned subsidiary, Goldwater Company.
The group adds that the share subscription is expected to enable the group to “hold a long-term strategic investment in a reputable company” comprising renewable energy project opportunities in Australia and the US.
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The share subscription is not expected to have any material impact on the net tangible assets per share and earnings per share of the group for the financial year ending Dec 31.
Shares in Interra Resources closed 0.1 cents lower, or down 2.38%, at 4.1 cents on Oct 17.
