THE BOURSE WHISPERER: Australian-American Mining Corporation (ASX: AIW) has completed a placement to sophisticated investors of over 21.5 million shares at 4.2 cents per share, raising $905,000 before costs.
The company indicated the funds raised will be used to advance its Bluebell and De Soto VMS copper-gold-silver projects located in Arizona in the United States of America.
AusAmerican is currently undertaking an initial 5,000 metre Reverse circulation drilling program on the Bluebell project.
The initial placement also includes one free option for every two shares subscribed for.
The issue of these attaching options is subject to shareholder approval at a General Meeting of the company, which will be held in March 2013.
The options will initially be unlisted, however following the general meeting the company will apply to the ASX to have the options quoted.
At the general meeting the company will also seek approval for a further placement of up to 60 million ordinary shares for a second raising on terms no less favourable than the initial raising.
If the two raisings are successfully completed, AusAmerican said it will be funded sufficiently to advance its projects throughout the 2013 calendar year.
The planned work includes two further drilling programs, airborne geophysics, a maiden resource at Bluebell as well as paying the first instalment of the option fee to purchase 100 per cent of the two projects.