Raising funds and Tax Refunds
THE FUND RAISER: This week more companies raised funds, while others receive more R&D rebates from the ATO.
Receipt of Research and Development proceeds
Eastern Iron (ASX: EFE) has received $690,574 from the partial refund of eligible expenditure from the Australian Government R&D Tax Incentive Program.
During November the company also received $150,000 from the proceeds of the sale of its entire interest in exploration licences in central western NSW which Eastern Iron had previously explored for iron pisolite.
The sale of the interest to its former joint venture partner, 3E Steel Pty Ltd means that Eastern Iron no longer retains any interest in NSW iron pisolite exploration.
The transfer of the tenements has also released $130,000 from security deposits to Eastern Iron.
The company also anticipates receiving a further $300,000 from the Victorian Government as a grant towards completion of studies relating to the provision of infrastructure for the Nowa Nowa
project.
These funds are payable on completion of the feasibility study and the company expects that these will be paid in the March quarter 2014.
These funds will be put towards the program of work at Nowa Nowa including the feasibility study as scheduled for completion by the end of this year.
Placement to raise $690,000 and SPP of up to $750,000
Traka Resources (ASX: TKL) is set to carry out a fund raising consisting of a share placement of 11.5 million shares at 6 cents per share to raise approximately $690,000 and a Share Purchase Plan (SPP) capped at $750,000.
Traka will use the proceeds of the capital raising for ongoing exploration of its project portfolio in the West Musgraves area of central Western Australia and for general working capital.
In the Musgraves, Traka has a land holding which is split between its exploration joint ventures with Western Areas and Anglo American Australia and Traka’s own exploration acreage.
Raising working capital
Potash West (ASX: PWN) has completed a placement of 2 million shares and 1 million unlisted options at a price of 10c per share, plus ½ option raising, to raise $200,000.00.
The options are exercisable before 25 October 2015, at an exercise price of 13 cents.
Proceeds of the placement will be directed to ongoing project development activities at Potash West’s Dandaragan Trough single super phosphate and potash projects, north of Perth in Western Australia.
Receipt of $1.5 million plus 25 million Terramin shares from sale of Adelaide Hills tenements
Maximus Resources (ASX: MXR) has received the first stage payment totalling $1.5 million in cleared funds following receipt of Ministerial approval for the sale of 5 tenements located in the Adelaide Hills in South Australia, including the Bird in Hand gold project to Terramin Exploration Ltd, a wholly-owned subsidiary of Terramin Australia (AX: TZN).
Confirmation was received of the issue of 25 million fully paid ordinary shares in Terramin Australia to Maximus, which will be subject to an escrow agreement for 12 months from the date of signing the Sale and Purchase Agreement.
The second and third stage cash payments of $1 million each (total cash consideration for the 5 tenements totalling $3.5 million) are contingent on approval of a Program for Environmental Protection and Rehabilitation (PEPR) and commencement of bullion production.
Maximus will also receive a 0.5 per cent royalty payable on bullion production in excess of 50,000 ounces.
Announcement of Share Purchase Plan
Pioneer Resources (ASX: PIO) will be undertaking a Share Purchase Plan to existing eligible Shareholders for new fully-paid ordinary shares at an issue price of 14 cents per New Share to raise up to approximately $750,000.
The company is offering approximately 53.6 million New Shares to raise a maximum of $750,000 to continue its drilling and exploration programs, which will supplement the deferred payments it receives from KalNorth Gold Mines (ASX: KGM) for the sale of the Western Mt Jewell gold project in 2011.