Fund Raising across the Boards
THE FUND RAISER: A mixed bag of methodology on the fund raising front this week.
Placement & SPP
Valence Industries (ASX: VXL) has received commitments from Institutional and sophisticated investors for a placement of new shares to raise $12 million (before costs) at an issue price of 70 cents per share.
A Share Purchase Plan will be offered to all eligible shareholders at a price of 70 cents per share.
The funds raised from the placement and SPP will be used to advance the company’s programs for growth including:
Optimising the company’s feasibility study in order to realise maximum benefits from the high-grade graphite mineralisation across the company’s existing JORC (2012) Mineral Resource and a recently identified new area of mineralised pegmatite.
Providing funding flexibility for early Phase II expansion works which may include preparation of Uley Pit 2, baseline civil work, preparatory infrastructure, and longer lead time orders; and
For general working capital purposes.
Placement by Caitlyn Limited
Azumah Resources (ASX: AZM) has advised that existing shareholder Caitlyn Limited is investing an additional $1.2 million in the company reinforcing its commitment to assist Azumah advance its Wa gold project in north west Ghana, West Africa.
The funds will be provided via the issue of 30 million new ordinary Azumah shares at 4 cents each and, together with Caitlyn’s existing shareholding of 20 million shares, will elevate it to become Azumah’s largest shareholder at approx. 13 per cent.
Azumah’s working capital will increase to over $4 million with the new funds being applied to complete a Feasibility Study, scheduled for Q4 2014, and to drill several high-priority exploration targets.
“The increased commitment by Caitlyn provides a strong endorsement for the Wa gold project and complements our other key investors and project participants, Ausdrill and Macquarie Bank, to create a powerful alignment of interests,” Azumah Resources managing director Stephen Stone said.
Caitlyn is controlled by Indian industrialist Mr Agnivesh Agarwal who is chairman of United Arab Emirates-based gold refiner Fujairah Gold FZC, a 100 per cent-owned subsidiary of UK listed mining house, Vedanta Resources plc, of which Agarwal’s family is the major shareholder.
A Subscription Agreement also provides Caitlyn with the opportunity to participate in a project development funding package structured by Azumah.
If Caitlyn decides to not participate, it has agreed not to use its shareholding to block progress of the funding or any related corporate transaction.
An anti-dilution provision allows Caitlyn to maintain its 13 per cent equity holding for the next 12 months and a standstill undertaking prevents Caitlyn exceeding a 19.99 per cent holding for three years.
Capital Raising
King River Copper (ASX: KRC) announced it is completing arrangements for a capital raising of $900,000 at 4.5 cents per share for the issue of 20 million shares from sophisticated and professional investors.
The capital raising will be undertaken in two tranches with the first tranche for 13,796,004 shares to raise $620,820 to be issued upon completion of the documentation and the second tranche for 6,204,005 shares to raise $279,180 to be completed upon shareholder approval.
The company’s phase 2 exploration program drilling is expected to recommence the week beginning September 22, which is hoped to maintain momentum in the search for high-grade mineralisation within a ‘dry weather drilling window’.
These funds will be used primarily for exploration activities and working capital.