Middle Island raises $10 million

THE BOURSE WHISPERER: Middle Island Resources has raised $10 million (before costs) through the placement of 25 million ordinary shares at 40 cents each.

The bulk of the new shares went to a number of large institutional investors based in Australia and North America.

The capital raising is the first undertaken by the company’s since its ASX-listing in December 2010.

The issue price represents a 60 per cent premium to the IPO issue and, the company said, is consistent with the stock’s 30 day volume weighted average price.

The placement will be completed in two tranches and will take the company’s cash position to approximately $16 million.

Middle Island said the funds raised by the placement will primarily be used to advance and accelerate exploration programs on its gold exploration properties in West Africa.

The company is currently drilling resource targets in Liberia and Burkina Faso.

“Our new shareholders were invited to participate on the basis of their strong track record as discerning long-term investors, considerably strengthening what is already an extremely solid register,” Middle Island Resources managing director Rick Yeates said in the company’s announcement to the Australian Securities Exchange.

“I thank them sincerely for their participation and support, and look forward to working closely with them as we progress our aggressive gold exploration and development strategy in West Africa.”