Funds beginning to trickle through to junior explorers
THE FUND RAISER: There appears to be a rise in activity in the fund raising space for junior miners recently.
Renounceable Rights Issue to raise $1.5 million
Monax Mining (ASX: MOX) announced a pro-rata non-renounceable rights issue to raise approximately $1.5 million to further advance the company’s Waddikee graphite project and for working capital purposes.
The company said it intends to apply the funds raised by the Rights Issue towards:
– Beneficiation and metallurgy studies of the Wilclo South deposit;
– Additional graphite resource definition drilling at nearby Francis prospect;
– Testing of the graphite product;
– Marketing initiatives of the graphite product;
– Seeking graphite off-take partners; and
– General working capital.
The Rights Issue is being offered on the basis of one new Monax ordinary share for every three ordinary shares held at an issue price of three cents per share.
Monax indicated the Rights Issue price reflected a 15 per cent discount to the most recent 30-day closing volume weighted average price of the company’s shares at the time of the announcement.
$7.3 million Placement and Entitlement Offer
Chesser Resources (ASX: CHZ) has completed a placement to institutional and sophisticated investors, raising gross proceeds of approximately $2.46 million.
The company also announced eligible shareholders will be invited to participate in a fully underwritten, pro rata non-renounceable entitlement offer to raise approximately $4.84 million.
“We are delighted with the strong support demonstrated by our existing investors and new shareholders in both the placement and the underwriting of the entitlement offer,” Chesser Resources managing director Rick Valenta said.
“We look forward to applying these funds to continue our progress at the Kestanelik project over the next 18 months as we progress the project through prefeasibility, feasibility and environmental permitting.”
The Placement of 22.4 million ordinary shares was completed at an issue price of 11 cents per share, a 4.3 per cent discount to the closing price of the Company’s shares on the ASX on 11 September 2013.
The Entitlement Offer will be an offer of just under 44 million new fully-paid ordinary shares in the company on the basis of one new share for every four shares held by Eligible Shareholders.
The offer price will be the same as that offered under the Placement, being 11 cents per new share.
Chesser indicated it intends using the funds raised under the Entitlement Offer and Placement to:
– Undertake the steps necessary to obtain the EIA approval for the Kestanelik gold project;
– Complete a pre-feasibility study for the Kestanelik gold project, which is planned to include a 21,000m drilling program conducted primarily for the purpose of converting existing Inferred Mineral Resources to Indicated Mineral Resources; and
– Providing working capital to the company generally.
Conditional Placement to raise $5 million
Middle Island Resources (ASX: MDI) is to conduct a conditional placement to raise $5 million at 10 cents per share.
The company also announced a share purchase plan, also at 10 cents per share to eligible shareholders, under which each eligible shareholder who held shares in MDI at the record date of 17 September 2013 will be entitled to acquire up to $15,000 of new shares in the company.
Both the Placement and SPP shares will rank equally in all respects with existing MDI ordinary shares.
Middle Island recently announced it had entered a heads of agreement to acquire the Samira Hill gold mine.
The company indicated the Placement will satisfy one of the conditions precedent to closing of that proposed acquisition.
Funds raised under both the Placement and the SPP will be used by the company for working capital purposes.
The cash component of the consideration for the proposed acquisition will be paid from the company’s existing cash reserves.
Raising up to $6.2 million
Anatolia Energy (ASX: AEK) is hoping to raise up to $6.2 million to fund the next phase of work at the company’s Temrezli uranium project in Central Anatolia, Turkey.
Anatolia has received firm commitments to raise up to $4.2 million through the placement of up to 52.5 million new fully paid ordinary shares at an issue price of 8 cents per share to institutional and/or sophisticated investors.
Anatolia has also executed a binding term sheet with one of its largest shareholders, Azarga Resources, pursuant to which the company may raise up to a further $2 million by way of two $1 million conditional put options over fully paid ordinary shares in the company at an issue price of 12 cents per share.
The company indicated it will use the proceeds from the Placement to conduct further in-fill and step out drilling, initiate an Environmental Impact Assessment and complete a Pre-Feasibility Study on the Temrezli deposit.
“The proceeds of the capital raising will enable the company to continue to advance the Temrezli uranium project at a rapid pace by committing to a substantial program of work and further demonstrating the enormous potential of this project, whilst maintaining a critical path to a production decision,” Anatolia Energy managing director Jim Graham said.
$2.2 million to progress Citronen zinc project
Ironbark Zinc (ASX: IBG) has raised $2.2 million to continue to progress the company’s Citronen zinc project in Greenland as well as exploration at its other Greenland and Australian base metal projects.
Ironbark Zinc said it has resolved to raise $2.2 million via a placement of approximately 36.7 million shares at 6 cents per share.
The placement will be undertaken in one tranche.
Ironbark released a positive Feasibility Study on the Citronen project in April, which the company said confirmed the project as a base metal mining project of global significance.
The company claims the project to be one of the world’s largest undeveloped zinc assets and is being evaluated to mine at a rate of 3.3 million tonnes per annum and produce zinc and lead concentrates for global supply with an estimated life of mine cash flow exceeding US$5.65 billion.
“We see that the global zinc stockpiles have fallen by 20 per cent over the last six months and believe that the draw down will now accelerate following the closure of the Brunswick and Perseverance mines in Canada this year,” Ironbark Zinc managing director Jonathan Downes said.
“As the 100 per cent owner of one of the world’s largest zinc project held by a junior, Ironbark is uniquely positioned to take advantage of a stronger zinc market with its advanced and large scale Citronen zinc project.”
Shortfall Placement finalises $37.5 million raising
Galaxy Resources (ASX: GXY) has raised $20.3 million from proceeds of the shortfall component of a pro-rata non-renounceable entitlement offer.
Galaxy has now raised a total of $37.5 million since 1 July 2013, which includes some funds raised from listed options expiring 31 December 2014 already being exercised.
Galaxy explained that during the course of the entitlement offer it has been engaged in ongoing talks with certain large strategic investment institutions in respect of subscribing for a substantial equity position in the company.
As such the company intends to set aside a shortfall block worth $9.2 million for these ongoing discussions.
The proceeds from the raisings to date will be used for partial debt pay down to Chinese lenders, working capital for the Jiangsu lithium carbonate plant in China and the Sal de Vida lithium brine and potash project in Argentina and to pay costs associated with the raisings.
“With over $37.5 million raised, or over three times the minimum subscription level under the Entitlement Offer, we have been able to make significant improvements in the company’s financial position,” Galaxy Resources interim managing director Anthony Tse said.
Importantly, as well as the receipt of additional capital we have been successful in negotiating significant improvements in the structure of both the Chinese bank debt and convertible bonds.
This is an area we are continuing to work upon, and will make further progressive improvements, as we pursue debt reduction initiatives.
“Now that in excess of $35 million has been raised, we have the capacity to pursue additional debt reductions in line with the convertible bond restructuring plan previously agreed with the bond holders.”