Fund Raising across the Boards
THE FUND RAISER: There seems to be enough going on to suggest interest in the resources sector still exists.
$600,000 Equity Raising
Enterprise Metals (ASX: ENT) is targeting an equity raising of $400,000 through a planned private equity placement to its largest shareholder Sinotech Minerals and a number of sophisticated investors, plus an accompanying Share Purchase Plan (SPP) to all shareholders targeting an additional $200,000 in equity funding.
SinoTech has indicated its intent to subscribe for $100,000 (25 per cent) of the private equity placement tranche.
The funds will advance exploration on the company’s Fraser Range nickel sulphide target.
“Enterprise has some of the most prospective ground in the Fraser Range for nickel-copper massive sulphides, centred along the gravity ridge containing a major layered mafic complex, and our target testing phase has only just begun,” Enterprise Metals managing director Dermot Ryan said.
Both the private placement and SPP are priced at four cents per share
$8.5 million non-renounceable Rights Issue Offer
Xanadu Mines (ASX: XAM) announced terms of a rights issue it will undertake immediately following the anticipated approval of a $13.6 million placement at the company’s AGM on 28 November 2014.
The company proposes a non-renounceable rights issue to eligible shareholders, on the basis of two new fully paid ordinary shares for every seven shares held, at an issue price of 12.26 cents per share to raise up to $8.5 million.
The funds raised under the Rights Issue (after payment of costs) will be used to partly repay the deferred consideration for the Kharmagtai project and advance exploration activities at the Kharmagtai and Oyut Ulaan copper-gold projects.
$3 Million Funding Agreement
Citigold Corporation (ASX: CTO) has agreed to a $3 million debt facility to assist in further advancing the company’s high-grade 100 per cent-controlled Charters Towers gold project.
The loan facility has nil interest rate and is fully drawn at the start by the issue of 30,000 notes of $100 each, which are not convertible into shares.
Citigold can redeem the notes at any time at a redemption cost of $110 per note if within six months, and a cost of $120 per note if between six and 12 months.
The notes are secured by mortgages over some of the mining leases and other tenure controlled by Citigold as well as the process plant.
The note facility is with CGN Finance Pty Ltd and was brokered between Citigold and CGN by 1P Capital out of Sydney.
Non-Renounceable Rights Issue
Platypus Minerals (ASX: PLP) is undertaking a non-renounceable rights issue to raise up to approximately $1.6 million.
Net proceeds in conjunction with existing cash reserves will be used to advance exploration on the company’s Australian and Peruvian exploration projects, repay debt and for general working capital.
New shares will be offered on the basis of one new share for each two shares held with a price of 2 cents per new share with one free attaching option exercisable at 3.5 cents on or before 1 December 2016 for every two new shares.
Platypus Minerals director Rick Crabb has agreed to underwrite the offer for up to $235,000, with $185,000 to be set off against loans to Platypus by Crabb.
Pro-Rata Non-Renounceable Rights Issue
Australia United Mining (ASX: AYM) announced a pro-rata non-renounceable rights issue to eligible shareholders, on the basis of one new share for every three shares held.
The company will issue up to approx. 22.3 million fully paid ordinary shares in the capital of the company at an issue price of 1 cent each, to raise approximately $2.23 million (before costs).