Fund Raising across the Boards
THE FUND RAISER: Always good to see funds raised and then put to good use out in the field.
Foster Stockbroking appointed lead manager to raise $5 million
Following its announcement to acquire the Mahenge North graphite project and the Mahenge graphite project, Green Rock Energy (ASX: GRK) has appointed Sydney-based investment bank, Foster Stockbroking, to lead manage a prospectus offering to raise up to $5 million at 20 cents per share on a post consolidation basis.
Under the terms of the mandate and Offer, Foster Stockbroking will raise not less than $4 million.
“We are delighted to be working with Lead Manager Foster Stockbroking who have supported our company since our strategic announcement in early July 2014 when we announced the company’s intention to become a graphite-focussed resource company,” Green Rock Energy director Gabriel Chiappini said.
The funds raised under the Offer will go towards further exploration on our projects, including a maiden drilling program.”
Rights Issue in preparation for Dual Listing
Gulf Minerals Corporation (ASX: GMC) is preparing to apply to dual list the company on the Singapore Exchange Catalist Board.
In readiness to do so the company will undertake a renounceable entitlement issue of 2 shares for every 1 share at an issue price of 3 cents per share to raise up to $1,341,000.
The company’s major shareholder has advised it shall be taking up its full entitlement of 13,400,000 shares.
“The directors wished for all existing shareholders to have an opportunity to increase their holding, should they wish, before the Singapore application which will bring in an influx of new shareholders,” Gulf Minerals Corporation chairman Graham Anderson said.
“Next year will be a major exciting time for Gulf as all the planning of the last nine months comes together.
“2015 will see commencement of smelter construction, exploration in Turkey, licensed ore exports and the listing on the Singapore Exchange.”
Up to $2.4m in Underwritten Entitlements Issue to fund exploration
Orion Gold (ASX: ORN) has received underwriting commitments of $1 million for a pro-rata renounceable entitlements issue to shareholders.
The maximum amount to be raised under the Entitlements Issue is approximately $2.43 million at three cents per fully paid ordinary share.
The proceeds from the Entitlements Issue will be used to fund the next round of exploration at Orion’s Connors Arc project in Queensland and the Fraser Range project in Western Australia and for working capital.
“As the company’s two highly prospective projects – Fraser Range (Western Australia) and Connors Arc (Queensland) – warrant immediate follow-up exploration and drill programs, it is preferable that current shareholders be given priority to participate in funding those programs,” Orion Gold chairman Denis Waddell said.
“The pricing of the issue combined with the issue being renounceable is considered appropriate as shareholders can either take up their entitlements or sell their rights (subject to buyer interest).
“In addition, shareholders will be offered to take up additional shortfall shares at three cents per share if a shortfall in take up occurs.
“The application and issue of the shortfall shares shall take priority over the shortfall shares being taken up by the underwriters.
“In support of the rights issue, our managing director, Errol Smart has underwritten $0.1 million and I have underwritten $0.5 million.”
BFS funding for Ngualla rare earth project
Peak Resources (ASX: PEK) announced a financing transaction with Appian Natural Resources Fund, a leading mining and metals private equity investor, to provide funding and technical expertise to complete a Bankable Feasibility Study (BFS) for the company’s Ngualla rare earth project in Tanzania.
Subject to executing final documentation, meeting various conditions and milestones, Appian’s overall investment will total approximately US$25 million and is anticipated to fully-fund Peak through the BFS to decision to mine.
“We are delighted to have attracted a group of Appian’s calibre as a cornerstone investor in the company and long-term partner to help Peak’s management team develop the Ngualla rare earth project,” Peak Resources managing director Darren Townsend said.
“Appian brings extensive operational and financial talent to supplement the Peak team and accelerate the timetable to production.
“We also look forward to being able to utilise Appian’s extensive network of financial relationships to assist the company progress through the BFS into project financing and ultimately into production.”