Funds across the Boards
THE FUND RAISER: Some interesting raisings and grants this week as the juniors boosted their bank balances.
Grant received for Nowa Nowa iron project
Eastern Iron (ASX: EFE) has received $300,000 as a grant from the Victorian Government, through Regional Development Victoria.
The grant represents the Government’s contribution towards studies undertaken during the Nowa Nowa Definitive Feasibility Study (DFS) and related to infrastructure requirements for the project.
The funds will be used to progress project permitting and finalise an updated mining study being completed as part of the DFS which is examining opportunities for reducing the cost of mining and waste rock handling.
The study is expected to be completed in June.
Funds to advance core projects
Metals of Africa (ASX: MTA) has secured funds to initiate exploration field activities on key projects in Africa.
The company has received commitments to raise $494,260 in a placement, enabling it to progress exploration on major assets in Mozambique, Tanzania and Gabon.
Exploration works have commenced and expectations are that drilling will commence at the Rio Mazoe zinc‐silver‐lead project in Mozambique in August.
Metals of Africa will place 7,604,000 shares at 6.5 cents per share, together with 3,802,000 free attaching listed options (subscribers to receive one free option for every two shares subscribed for, exercisable at 15 cents and expiring 7 Jan 2017), to professional and sophisticated investors, many of whom are existing shareholders of the company.
$1.16 million to recommence Indian iron ore operations
NSL Consolidated (ASX: NSL) announced it is now funded to recommence Indian iron ore operations in June, with first sales anticipated within three months of recommencement.
The company said Indian domestic iron ore demand and prices are increasing, the national iron ore miner NMDC, and increased domestic prices by 9 per cent last week.
The company has secured commitments predominately from existing top 40 shareholders and Board/Management for the placement of 116 million fully paid shares at an issue price of one cent per share, raising $1.16 million before costs of the offer.
$11 million in funding from Chinese investors
Cauldron Energy (ASX: CXU) has secured a total of $11 million in funding via a series of share placement agreements with a range of Chinese investors.
In accordance with the placement agreements, the $11 million placement funds will be paid to the company from June 2014 to December 2015, subject to shareholder approval, with the majority being received in the current year.
Cauldron conducted a fund raising road show in Beijing in late 2013, which culminated in the execution of a mandate with one of the leading investment companies in China, Shanghai Joseph Limitless Investment, to raise funds for the company.
Of the placement funds, $9 million is attributable to funds raised under this mandate from new investor Guangzhou City Guangrong Investment Management Co. and funds directly from Beijing Joseph Investment Co. Ltd / Joseph Investment International and Joseph Investment’s controlled entity Guangzhou Joseph Investment Co. Ltd.
$150,000 Government drilling grant
Horseshoe Metals (ASX: HOR) has been awarded a second Western Australian State Government grant, on this occasion for $150,000, to support a deep drilling program on the company’s 100 per cent-owned Horseshoe Lights copper‐gold project.
The project is located 75km west of Sandfire Resources’ (ASX: SFR) Degussa copper‐gold mine and 25km east of Resource and Investment’s (ASX: RNI) recent Forrest copper‐gold discovery, in central Western Australia.
The $150,000 in funding is provided from Round 9 of the co‐funded drilling program of the Exploration Incentive Scheme (EIS).
This funding is in addition to $100,000 in EIS funding approved in December 2103 from Round 8 of the co‐funded drilling program, which the company will be utilising to drill at its Kumarina project.