Funds across the Boards
THE FUND RAISER: Some interesting raisings this week as the juniors boosted their bank balances.
Placement to Transamine Trading S.A.
Discovery Metals (ASX: DML) has completed a placement with Transamine Trading S.A., raising $2.8 million.
The company issued approximately 84 million fully paid ordinary shares at the price of 3.451 cents per share.
Prior to the placement, Transamine held 6.4 per cent in the company and was its second largest shareholder.
Transamine will now hold an 18.6 per cent stake in Discovery, making it the company’s largest shareholder.
As part of the placement, Discovery has agreed to appoint a nominee of Transamine to its Board.
“It is pleasing to announce that one of the company’s largest investors and most strategic partners has made this investment in the company,” Discovery Metals chairman Jeremy Read said.
“We have a productive and value adding relationship with Transamine and we appreciate their continued support.”
Fully underwritten Rights Issue to raise $2.8M
Hastings Rare Metals (ASX: HAS) has announced a pro rata non-renounceable rights issue of approximately 74.1 million new shares on the basis of two new shares for every five shares held by eligible shareholders, at an issue price of 3.8 cents per share, to raise $2.8 million.
Funds raised from the Rights Issue are intended to be used to further develop the company’s Hastings and Yangibana projects, to identify suitable strategic relationships in north Asia, and to provide operational funds for the next 12 to 18 months.
Capital raising to fund Stage 2 drilling program
Promesa Limited (ASX: PRA) has undertaken a $1.1 million capital raising via the issue of 50 million fully paid ordinary shares.
30 million shares were placed at 2.7 cents per share and 20 million shares were placed at 1.9 cents per share.
The placement was made to sophisticated and professional investors.
The company said it will use the proceeds primarily to fund an upcoming Stage 2 drilling program at the Alumbre copper-molybdenum porphyry project in Peru.
Funds raised to progress new business strategy
River Resources (ASX: RVR) has received firm commitments by way of placement to sophisticated investors to raise $393,500.
Just under 8.9 million shares will be placed at a price of 4.5 cents with a free attaching option on a one for two basis with an exercise price of 10 cents expiring on 31st December 2015.
The company said strong demand meant that the placement closed oversubscribed.
“The company is delighted with the demand for the placement from both new and existing shareholders,” Red River Resources managing director Donald Garner said
“It certainly reinforces our belief that there is strong support for the new business strategy which was announced to the ASX on the 29th April 2014.”
Red River said funds raised from the placement will be used to pursue brownfield opportunities, to expedite exploration on it tenements and for working capital purposes.
Private Placement of 45 million shares
Pacific Niugini Ltd (ASX: PNR) announced it has undertaken a capital raising of $2.34 million by a placement of securities with sophisticated and private investors.
Investors have subscribed for a total of 45 million fully paid ordinary shares in Pacific Niugini at 5.2 cents per share.
The placement will provide working capital to enable the company to advance towards production at its recently acquired Nicolsons gold mine near Halls Creek in Western Australia.
“We are delighted by the strong support that we have received to advance the Halls Creek project to production in these tough market conditions,” Pacific Niugini managing director Paul Cmrlec said.
“Management will pull out all stops to achieve our production goals and deliver acceptable returns for our shareholders.
We thank our long term shareholders for their support in this placement, and welcome new participants in this exciting time for the company.”
Equity Raising to complete financing of Wetar copper project
Finders Resources (ASX: FND) has announced a trading halt in order to complete an equity raising of up to $15.3 million.
The Equity Raising will be undertaken through a placement of up to 71.4 million shares to raise $10 million to institutional and sophisticated investors followed by a 1 for 15 Non Renounceable
Entitlement Offer to raise a further $5.3 million.