Fund Raising across the Boards
THE FUND RAISER: There seems to be enough going on to suggest interest in the resources sector still exists.
Next tranche of financing received
Cradle Resources (ASX: CXX) announced Tremont Investments has exercised its right to acquire a further 12.5 per cent of the Panda Hill niobium project for a further US$5 million ($5.75m) investment (taking Tremont to 25% in total).
Tremont initially invested USD$5 million which was used to de-risk the project through an in-fill and extensional drilling program and extensive metallurgical work.
Cradle’s mandate from Tremont is to proceed with ongoing project development work.
Under the agreement with Cradle, Tremont has the right to contribute a further US$10 million to acquire a further 25 per cent interest in the Panda Hill project (taking Tremont to 50% in total), which will be used to finalise feasibility studies and other development activities.
“Tremont’s further investment in Panda Hill follows excellent results in the recent drilling and met programs and demonstrates their ongoing confidence in the project,” Cradle Resources managing director Grant Davey said.
“The Cradle team has enjoyed working with the Tremont team over the last five months and is looking forward to driving successful development of this world class niobium project jointly with Tremont.”
Pioneer receives early payment of $1.05 million
Pioneer Resources (ASX: PIO) has received the final installment arising from the sale of the Western Mt Jewell gold project.
Pioneer announced the sale of the Western Mt Jewell gold project in 2012.
Consideration for the transaction was $8 million cash, payable in four instalments.
The final instalment, of $1.1 million which was due on 6 March 2015, was discounted slightly to reflect the time value of the early payment.
With the $1.05 million received, the company presently holds cash reserves of approximately $2.6 million.
$3 million to advance Nachu graphite project
Magnis Resources (ASX: MNS) has raised $3 million through a placement of shares to sophisticated and institutional investors in Australia and overseas.
The funds will be used to complete a maiden JORC resource due next week, a Pre-Feasibility Study due in December and an ongoing Environmental Study.
“We are very encouraged by the strong interest in our capital raising, particularly in such a difficult economic environment,” Magnis Resources chairman Frank Poullas said.
“We look forward to announcing our maiden JORC resource next week.”
The placement consisted of approx. 17.6 million shares issued at 17 cents per share
Non-Renounceable Entitlement Offer
IMX Resources (ASX: IXR) is to undertake a non-renounceable pro rata entitlement offer to eligible shareholders on the basis of one share at an issue price of 1.2 cents for every two fully paid ordinary shares to raise approximately $3 million.
The company will use the proceeds for exploration and evaluation work at its Chilalo graphite project and Kishugu gold prospect, for completion of study work required to retain the tenement on which a nickel resource exists, to meet costs associated with holding tenements on its Nachingwea Property in south-east Tanzania and for working capital.
Metallum secures up to US$1,020,000
Metallum Ltd (ASX: MNE) has executed an agreement for up to US$1,020,000 of funding from a sophisticated institutional investor.
The investment will provide Metallum with funding to allow the acquisition of the San Sebastian concession to be completed and ramp up production at the San Sebastian mine, as well as ongoing working capital.
“We are encouraged by what we see at San Sebastian and are keen to take full ownership of the concession and ramp up our mining activities there as quickly as possible,” Metallum managing director Zeff Reeves said.
“This funding provides us with certainty to complete the San Sebastian acquisition, accelerate our work there and begin trucking material to the plant.
“The investment structure minimises dilution at today’s subdued share price levels, while allowing the company to maintain its cash balance during this exciting and important time in executing our strategy at El Roble.”