Ashurst has advised S2 Resources Limited (S2) on a Placement to institutional investors and share purchase plan to raise up to A$12.1 million.

S2 is undertaking these raisings to strengthen its balance sheet, to allow it to accelerate its ongoing exploration activities and for general corporate purposes.  Post completion of the capital raising, S2 will be well funded with a cash balance of up to approximately A$27.5 million.

The issue price is A$0.40 per share, being a 14% discount to S2's closing share price on 22 July 2016, and a 3.3% discount to the 5 day VWAP. The shares issued under the Placement will be within S2's existing placement capacity.

Eligible shareholders as at 5.00 pm (Australian Western Standard Time) on 22 July 2016 were offered the opportunity to participate in the SPP and subscribe for new shares up to the value of A$15,000.  The SPP will be capped at A$3 million and is not underwritten. The issue price under the SPP will be the same as the issue price for the Placement.

Lead partner on the deal Roger Davies (Corporate) commented: "It was a pleasure to assist S2 with its first placement and SPP, having advised the company on the demerger from Sirius and ASX listing at the end of last year.  We look forward to continuing to work with the S2 team, and assist with its further development."

Roger was assisted by senior associate Themo Georgiou and lawyer Alexandra Meade.