Fund Raising across the Boards
THE FUND RAISER: Some renewed vigour provided a bit of spark to the Fund Raising front this week.
Completion of Share Placement
Echo Resources (ASX: EAR) has completed a placement of approx. 6.36 million fully paid ordinary shares at 11 cents per share to raise $700,040 before costs.
The shares have been placed to sophisticated and professional investors and rank equally with the company’s existing issued shares.
“We thank Echo’s new shareholders for their support,” Echo Resources managing director Dr Ernst Kohler said.
“Despite the difficult market conditions, we are very pleased that the capital raising was done at a 10 per cent premium to Echo’s closing share price on the previous trading day.”
The proceeds of the placement are intended to be used to advance Echo’s projects, including exploration drilling programs at the Julius gold discovery in central Western Australia, and for general working capital purposes.
Capital Raising
Promesa Limited (ASX: PRA) has undertaken a capital raising of $1 million via the issue of up to 40 million fully paid ordinary shares at 2.5 cents each.
The placement is being made to sophisticated and professional investors.
Proceeds from the placement will be used primarily to fund the company’s Stage 2 drilling program, the extension of the magnetic survey (two fold), upgrading of current permits increasing the area of influence four fold and allowing drilling beyond the current approved 20 platforms at the Alumbre copper-molybdenum porphyry project in Peru.
$3.7 Million R&D Tax Rebate
Carbon Energy (ASX: CNX) has received $3.7 million as a research and development (R&D) tax incentive cash rebate for R&D expenditure in the 2014 financial year.
The company has now repaid a $1.5 million Macquarie Bank loan facility in full.
Following the submission of its Decommissioning Report, Carbon Energy is continuing to prepare a Rehabilitation Plan for its BloodwoodCreek UCG trial site.
This is expected to be ready for lodgement with the Queensland Government by the end of September 2014.
Capital Raising
Wild Acre Metals (ASX: WAC) has received commitments to raise $300,000 by way of a placement of securities.
The placement will involve the issue of 20 million shares at an issue price of 1.5 cents per share together with one (1) unlisted option exercisable at 10 cents each within 3 years for every three (3) shares subscribed for under the placement.
Funds raised from the placement will be applied towards progressing the company’s Sambalay/Salvador high-grade silver project in Southern Peru, target generation at the Mt Ida gold/nickel project in Western Australia and for general working capital purposes.
MRL raises $1.1 million
MRL Corporation (ASX: MRF) is preparing to start a bulk sampling program at the company’s high-grade Warakapola graphite project in Sri Lanka.
The preparations follow the company raising $1.1 million through a share placement, which involved the placement of 16.4 million shares at 7 cents each to sophisticated investors from Asia.
The bulk sampling program, which is planned to commence in the December Quarter, is aimed at accelerating the start of commercial production of high-grade graphite at Warakapola following the award of an Industrial Mining Licence.