THE BOURSE WHISPERER: Ampella Mining has raised $47 million (before costs) by way of a Private Placement and a Share Purchase Plan (to be underwritten) of approximately 36.1 million ordinary shares in total at $1.30 per share.
The issue price of $1.30 represents a 0.38 per cent discount to the company’s last closing price of $1.305 before the placement.
“The completion of the capital raise will boost Ampella’s cash balance to over $60 million after payment of issue costs when added to existing cash reserves,” Ampella Mining said in its ASX announcement.
“The funds will be used for general working capital purposes including exploration activities and feasibility studies.”
Ampella said it currently has 11 drill rigs on site, where it is targeting additional ounces within close proximity to the existing 3.1 million ounces Konkera Resource (independent JORC Compliant Mineral Indicated Resource of 30 million tonnes at 1.6 grams per tonne gold for 1.5 million ounces gold and Inferred Resource of 31.8 million tonnes at 1.5 grams per tonne gold for 1.6 million ounces gold).
The drilling is also being undertaken to define new discoveries along the, now 150 kilometres long, Batie West shear zone.
According to Ampella its 100 per cent- owned 2,600 square kilometres Batie West project represents one of the largest contiguous landholdings in Burkina Faso.
The capital raising is to consist of 3 parts:
– 30.8 million shares in a placement to Australian, North American and European based institutions and sophisticated investors within the company’s 15 per cent share capacity raising approximately $40 million;
– 3.8 million shares in a placement to Taurus Funds Management raising approximately $5 million (subject to shareholder approval); and
– $2 million Share Purchase Plan (to be underwritten) of 1.5 million shares to existing shareholders. The company has reserved the right to increase this to $5 million subject to shareholder demand at its sole discretion.
After completion of tranches 1 and 2, Taurus Funds Management will hold approximately 11.5 million shares representing approximately 4.7 per cent of the company’s issue capital.