Fund Raising across the Boards
THE FUND RAISER: There seems to be enough going on to suggest interest in the resources sector still exists.
$1.1 million to advance San Santiago copper assets
Minera Gold (ASX: MIZ) has received commitments from existing major shareholders and clients of Alignment Capital to raise $1.1 million in new funding.
The company sought the funding to ensure its San Santiago plant operates at the level required to meet 2015 forecast production targets through both owner operator mining and third party toll treatment.
The funds were raised predominately through the company’s major shareholders by way of equity and convertible notes.
“We are extremely pleased with the strong support received from our major shareholders and APG, which is testament to the recent material acquisition of the San Santiago plant and surrounding concessions,” Minera Gold CEO and managing director Ashley Pattison said.
“These funds provide us with the opportunity to maximize capacity at the plant and bolster the returns for shareholders in the short term.”
Non-renounceable Rights Issue to raise up to $4.96 million
Alliance Resources (ASX: AGS) will conduct a non-renounceable rights issue to shareholders on the basis of two new shares for every 11 shares held at eight cents per new share to raise approximately $4.96 million.
Each shareholder will also be entitled to receive one attaching new option for every new share subscribed for, each exercisable into one Share at an exercise price of 15 cents per share and expiring on 30 September 2015, for no additional cash consideration.
The funds raised under the Rights Issue will primarily be used for:
Four Mile uranium project November 2014 cash call (due in December) to maintain the company’s participating interest in the project;
Costs awarded to Quasar and Heathgate in 2012 and 2013 in the Court proceedings commenced by
Alliance concerning access to books, records and agreements pertaining to the Four Mile Joint
Venture which are currently the subject of assessment by the Court;
Costs of the Offer; and
General working capital, including legal fees in relation to matters currently before the Court.
“The company is a uranium producer with a significant inventory of uranium concentrates, which when sold, will enable Alliance to declare a dividend, grow its existing 100 per cent projects and fund new projects,” Alliance Resources managing director Steve Johnston said.
“We believe that the rights issue is well-priced for our existing shareholders and that the funds raised, if fully subscribed, should see Alliance through to first revenue.”
$1.1M to Advance Cascavel
Orinoco Gold (ASX: OGX) has received commitments from professional and sophisticated investors to raise approximately $1.1 million through a share placement at 7 cents per share.
The company also advised it will be offering existing eligible shareholders the opportunity to participate in a Share Purchase Plan (SPP) at an issue price of 7 cents per share.
Together, the funds raised from the placement and SPP will be used to complete development and mine plans for the company’s Cascavel gold project while Orinoco secures a suitable debt funding package to underpin the start of development, as well as for general working capital purposes.
Placement- $2.5 million
Geopacific Resources (ASX: GPR) has completed a Placement to institutional and sophisticated investors of approx. 43.5 million shares at 5.75 cents per share raising $2.5 million.
Funds raised from this Placement will advance exploration activities at the company’s Kou Sa project in Cambodia.
“Investor support for the company, in this very difficult market, is outstanding,” Geopacific Resources managing director Ron Heeks said.
“Continual high-grade drilling results from several new discoveries at Kou Sa over the past few months has now attracted institutional interest.
“We expect Kou Sa to continue to produce compelling results as we move toward our initial resource estimate.”