Fund Raising across the Boards
THE FUND RAISER: A quiet week on the fund raising front, but still interesting to see what’s happening.
AusQuest secures further funding
AusQuest Limited (ASX: AQD) has secured funding of up to $750,000 from its major shareholder, Christopher Ellis, by executing a Loan and Convertible Note Agreement.
The additional funds, together with existing cash reserves, will enable AusQuest to continue to advance its prospective WA nickel projects and Peru copper projects.
AusQuest managing director Graeme Drew said the funding arrangement represented a strong vote of confidence by the company’s major shareholder in the potential of its key projects, underpinning ongoing exploration efforts and avoiding the need to undertake a dilutive capital raising at a low point in the market.
“We are very pleased to have concluded this arrangement as it will facilitate ongoing nickel exploration in the Fraser Range of WA – where we have recently identified some exciting new prospects – well into 2015, as well as further development of AusQuest’s copper projects in southern Peru, enabling us to add value ahead of a possible farm-out of these projects,” Drew said.
$13.6M placement and Rights Issue
Xanadu Mines (ASX: XAM) has entered binding subscription agreements with a private vehicle and two equity investment funds managed by Asia Capital & Advisors Pte Ltd (ACA) and Khan Investment Management.
The Placement will raise $13.6 million at a subscription price of 12.26 cents per share.
Xanadu intends to conduct a pro rata non-renounceable rights issue at the same price, on terms to be decided, prior to the allotment of shares to the new investors in order to allow existing shareholders to participate in the fund raising activity.
“This Transaction will allow us to substantially increase our equity in the Mongol Metals LLC joint venture and fund the exploration and evaluation of the exciting Kharmagtai project,” Xanadu Mines chairman Mark Wheatley said.
“Thanks also have to go to our exploration and support teams whose efforts over our short period of ownership of this project have been outstanding.”