Fund Raising across the Boards
THE FUND RAISER: Always good to see funds raised and then put to good use out in the field.
Share Placement to raise $2 million
Regal Resources (ASX: RER) has signed a commitment with an affiliate of Toronto-based Sprott Inc. to raise $2 million via a share placement at 5c per share with accompanying one for one option exercisable at 8c within three years, subject to Regal’s right to accelerate the expiry.
Sprott’s commitment provides an additional market endorsement for Regal’s Kalongwe copper/cobalt project located in the Katanga Province of the Democratic Republic of Congo.
Funds from the placement are principally intended to advance development of Kalongwe through completion of Phase II drilling, payment of the final instalment to GICC for Regal’s 30 per cent interest in Kalongwe Mining SA and to complete Phase II Scoping Studies.
The company is in advanced negotiations with Traxys Europe SA to acquire its 30 per cent interest in Kalongwe.
This transaction would increase Regal’s interest in Kalongwe from 30 per cent to 60 per cent and result in Traxys becoming a significant shareholder in Regal.
Raising of Additional $0.34 million
Red Mountain Mining (ASX: RMX) has received firm commitments from professional and sophisticated investors to raise approximately $0.34 million via the issue of just over 56.4 million shares at an issue price of 0.6 cent per share.
Including a previous placement announced in September 2014, the company has raised a total of $0.94 million, increasing its cash balance to circa $1.4 million.
“We are delighted with the interest and demand for this placement, in difficult market conditions, from our loyal supporters,” Red Mountain managing director Jon Dugdale said.
“The funds will be used to continue exploration of the five new priority gold-silver targets within the 15 kilometre strike of epithermal structures on the Lobo prospect and general working capital.”
Private Placement raises US$1.4 million
Lachlan Star (ASX: LSA) has agreed on a non-brokered private placement to Hamilton Place Associates LLC of 16.4 million fully paid ordinary shares at an issue price of US6.97 cents per ordinary share for proceeds of US$1.14 million.
Hamilton has also agreed to a prepaid gold loan working capital facility of at least US$4 million to the company’s subsidiary, Compañía Minera Dayton (CMD), with such working capital advance and associated terms and conditions to be finalised no later than 31 December 2014.
The facility is dependent upon Lachlan Star having US$4 million in cash and cash equivalents at 30 November 2014 and Hamilton’s representatives having made a site visit to the CMD Gold Mine by that date.
$4 million Capital Raising
RNI NL (ASX: RNI) has raised $4 million, less costs, via a placement to advance its pipeline of priority drilling targets across the company’s tenement holding in Western Australia’s Bryah Basin.
The placement, which remains subject to the clearance of funds, involved the issue to sophisticated investors of 40 million ordinary fully-paid shares at an issue price of 10 cents per share, with an attaching one for two unlisted 15 cent option, exercisable one year from the date of issue, raising a total of $4 million, less costs.
The placement will enable RNI to step up its exploration and drilling programs along the company’s Bryah Basin tenement package, including the T10 and Beatty Park prospects within the Cashmans project, three well-defined conductors identified at the Morck’s Well project which directly adjoins Sandfire Resources’ (ASX: SFR) Doolgunna project and RNI’s Doolgunna project, located within three kilometres of Sandfire’s DeGrussa copper-gold mine.
The funds raised will also enable RNI to make scheduled debt repayments under the company’s facility with Taurus Resources No.2 Fund.