Explorers tap capital markets
THE FUND RAISER: The glorified lamington drives continue apace as junior miners raise important funding.
Share Placement
Drummond Gold (ASX: DGO) has made a share placement of 35 million fully-paid ordinary shares at an issue price of 0.2 cents per share raising a total of $70,000 to sophisticated investors.
The Placement consists of an allotment of 20 million fully-paid shares at an issue price of 0.2 cents per share to Resource Capital Fund V L.P. which represents the completion of the first tranche of the capital raising to RCF that was announced on 5 September 2013 and an allotment of 15 million fully-paid ordinary shares at an issue price of 0.2 cents per share to Cairnglen Investments Pty Ltd.
The total funds raised under the Placement will be used for working capital purposes and to identify and evaluate opportunities with potential for copper and gold.
After this placement the company will have 270,688,642 fully paid ordinary shares on issue.
Completion of Shortfall of Entitlements Offer and Placement of Options
Laconia Resources (ASX: LCR) referred the market to its announcement on 7 June 2013 regarding its re-issued prospectus for an entitlement issue of (1) share (New Share) at an issue price of 1 cent per New Share for every three (3) shares held on the 19 June 2013, together with one (1) free attaching option exercisable at 6 cents each on or before 30 September 2018 for every one (1) New Share subscribed for and issued (New Option) (Entitlement Offer), to raise a maximum of $915,852.
The prospectus also provided for the issue of 45,792,649 options (Placement Options) exercisable at 6 cents each on or before 30 September 2018 at an issue price of 0.1 cent per Placement Option to raise $45,793.
Laconia shareholders approved the issue of the Placement Options at a general meeting held on 21 June 2013.
The company confirmed the finalisation of the shortfall comprising 59,091,930 New Shares and New Options.
The Company previously announced on 9 July 2013, it had received valid applications for 32,493,270 New Shares and New Options raising $324,933.
Laconia also confirmed the issue of 45,792,649 Placement Options.
Funds raised (before costs of the offer) through the shortfall of the Entitlement Offer and the Issue of the Placement Options is $636,712.
The company indicated the funds raised from the Entitlement Offer and Shortfall will be predominately used for completion of Community Access Agreements and obtaining drilling permit for Rasuhuilca copper-gold-silver project in Southern Peru.
Completion of Placement
Renaissance Minerals (ASX: RNS) announced in July its intention to undertake a two tranche placement and a Share Purchase Plan to raise funds to continue to advance, de-risk and add value to the company’s 100 per cent-owned Cambodian gold project.
Renaissance has confirmed it has now completed the second tranche of the placement with the allotment of 16.31 million shares at 5 cents per share to raise gross proceeds of $0.8 million.
Tranche one of the placement being the issue of 27.69 million shares to raise gross proceeds of $1.38 million was completed on 29 July 2013.
A further 34.2 million shares were issued on 29 August 2013 under the SPP to raise gross proceeds of $1.71million.
$3M raised for next phase of exploration
Corazon Mining (ASX:CZN) has raised approximately $3 million via a placement to fund the next phase of exploration at the company’s Top Up Rise (TUR) project in the Gibson Desert of Western Australia.
Corazon has resolved to raise up to approximately $3 million via a placement of approximately 107.1 million shares at 2.8 cents per share.
The Placement will be completed in two tranches, with up to approx. 61.2 million shares in Tranche One, and the balance of up to approx. 45.9 million shares to be issued in Tranche Two (subject to shareholder approval).
Australian financial services firm and Corazon’s corporate advisor, Hartleys Limited, is the Broker to the Offer.
Funds raised will be used for drilling and exploration activities at the Top Up Rise project, studies and exploration at Corazon’s Canadian gold and nickel projects and for general working capital.
At TUR, the drill rig is already on site and exploration is planned to recommence in the coming weeks, with RC and diamond core drilling, plus a VTEM (airborne electromagnetic) survey to test for zones of massive sulphides.
This next phase of exploration will further test the TUR gravity anomaly and will also test for economic concentrations of mineralisation intersected in the recently completed maiden drilling program.
“It is very encouraging to receive such strong support for the Placement,” Corazon Mining managing director Brett Smith said.
“This is an excellent validation of the prospectivity of Corazon’s Top Up Rise project.
“We will now be fully funded for the next phase of high-impact exploration of this very large mineralised system.”
Placement, Non-Renounceable Rights Issue and Loyalty Option Issue
Metals of Africa (ASX: MTA) has reached agreement on a three part capital raising, involving a placement, a non-renounceable rights issue and a pro-rata loyalty option issue.
Under the three staged capital raising process the Company will raise $2,466,800 before costs.
Funds raised will be used to undertake further exploration activities and a maiden drill program of the company’s recently discovered Rulio prospect.
The Placement has been arranged and the Rights Issue and Option Issue are proposed to be underwritten by Lead Manager, CPS Capital Group.
“We are delighted to work with our supporting broker CPS Capital who has been with us since listing on these capital raising initiatives, and also to welcome new sophisticated and professional investors to the company,” Metals of Africa executive director Cherie Leeden said.
“These funds will allow the company to enter into a maiden drilling program on the highly prospective Rulio prospect whilst simultaneously exploring for additional high priority drill targets.”