Raising funds and Tax Refunds
THE FUND RAISER: This week some companies raised funds, while others received R&D rebates from the ATO.
$14.1 million Received in Respect of Eligible Research and Development Expenditure
Lynas Corporation (ASX: LYC) has received $14.1 million from the Australian Taxation Office relating to eligible research and development (R&D) expenditure incurred during the year ended 30 June 2013, principally on the development of the Lynas Mt Weld rare earths project.
Placement completed at Nil Premium
Red Gum Resources (ASX: RGX) has undertaken a placement to sophisticated investors at two cents per share to raise $300,000.
The funds raised represent a nil premium to the company’s last closing share price.
15 million new shares will be issued pursuant to this Placement, which will rank equally with shares the company currently has on issue.
The funds raised are to be used to undertake necessary technical and legal due diligence associated with formation of a possible alliance with Rio Perdido Copper Limited as well as existing working capital.
“That the placement was subscribed at a nil premium highlights the confidence investors place in the opportunity provided by the potential alliance with Rio Perdido Copper Limited,” Red Gum Resources executive chairman Dr Ray Shaw said.
The company said the raising will ensure it can pursue the possible alliance without impeding upon the momentum of its current activities–centred in Region IV of Chile.
Capital Raising to Accelerate Nickel Exploration
Panoramic Resources (ASX: PAN) has received commitments from domestic and international institutions and sophisticated investors to raise $15.12 million.
The funds will be received in two tranches:
Tranche 1 will raise $8.586 million and has been carried out under the 15 per cent placement provisions (under ASX Listing Rule 7.1).
A total of 31.8 million new ordinary shares will be placed at 27 cents per share, a 10 per cent discount to the company’s 30 day VWAP immediately prior to entering a trading halt.
Tranche 2 will raise an additional $6.534 million, also at 27 cents per share. Tranche
2 is subject to shareholder approval at a General Meeting to be held on or about 16
December 2013.
The Placement has been taken up by existing and new investors
Existing shareholders will be able to participate via a Share Purchase Plan, which will be capped at $10 million.
Under the proposed SPP, shareholders will be able to subscribe forup to $15,000 worth of shares in the company.
The new shares under the SPP will be issued at 27 cents per share, the same price as the Placement.
The majority of funds raised from the Placement and SPP will be used to accelerate Panoramic’s nickel exploration programs with a focus on extending mine life.
The balance of funds will be used for nickel production efficiencies, gold and PGM project studies and for general working capital purposes.
Finance Facility
Ramelius Resources (ASX: RMS), through its wholly owned subsidiary, Mt Magnet Gold, has entered into a $16 million gold pre-pay finance facility with Deutsche Bank Australia.
The facility will enable Ramelius to fast track the acquisition and potential pre-mining work at the Vivien gold project in Western Australia, while at the same time, take advantage of opportunities to enhance the company’s Mt Magnet gold project through acquisition and/or development of a new satellite open pit.
The Facility will be fully repaid in equal instalments through the delivery of gold from January to August 2014 and will be secured against the company’s Mt Magnet assets.
Under the terms of the Facility, Ramelius will acquire put options over 7,500 ounces of gold per month at a strike price of $1,200 per ounce for the period from April to August 2014, in line with the company’s existing gold put option purchase program.
Ramelius already holds put options over 7,500 ounces of gold per month from November 2013 to March 2014, at strike prices between $1,200 and $1,250 per ounce.
“This transaction allows the company to maintain a robust cash balance during expected ongoing challenging market conditions for resources companies and miners into 2014 but delivers us the flexibility to bring the Vivien project to a decision to mine by the end of the June quarter 2014, whilst maintaining our strong growth momentum at our flagship Mt Magnet operations,” Ramelius Resources managing director Ian Gordon said.
$0.5 million Research & Development Tax Refund Received
Helix Resources (ASX: HLX) has received a research and development (R&D) tax rebate of $505,846 resulting from the company’s activities during the 2012–2013 financial year.
The current cash reserves of the company, inclusive of this rebate, is approximately
$2.1 million.
Placement of shares to Professional Investors
Austpac Resources (ASX: APG) has completed a private placement of 71.67 million fully paid ordinary shares at 3 cents each to raise $2.15 million.
The shares were placed with professional investors.
The funds will be used for working capital and completion of construction and commencement of commissioning of the Newcastle Iron Recovery Plant.
These shares rank equally with the existing listed shares of Austpac Resources.