Raising funds across the Boards
THE FUND RAISER: There’s been some happy explorers boosting their coffers this week.
Placement and Entitlement Offer to raise $18.2 million
Phoenix Gold (ASX: PXG) signalled its intention to raise new equity of up to $18.2 million (before costs) via an institutional placement of approximately 60 million shares to raise up to approximately $7.8 million and a 1 for 3 pro-rata non-renounceable entitlement offer to raise up to approximately $10.4 million.
The combined proceeds of the Offer will be used to fund the staged mine development plan, continue lateral and depth extensions at Castle Hill and Broads Dam projects and to provide working capital and pay for offer costs.
In the event the company does not receive any monies from the Entitlement Offer, the staged mine development will still be commenced using the funds raised from the Placement and the company’s cash on hand.
LionGold increases stake in Unity
Unity Mining (ASX: UML) announced the company’s major shareholder, LionGold has entered into a binding subscription agreement to acquire additional shares by way of a share placement to increase its stake to 19.9 per cent.
In February 2014 LionGold committed to sub-underwrite Unity’s Share Purchase Plan (SPP) in line with its then current holding of 13.2 per cent.
Unity agreed to allow LionGold an opportunity to increase its interest in the company up to a maximum of 19.9 per cent via a subsequent placement.
Under the terms of the subscription agreement, LionGold will now acquire an additional 87.8 million shares via this placement at the same price as set for shares offered under the SPP at 2.7 cents per share, for a total consideration of $2.37 million.
“We welcome this further commitment from LionGold, which builds on its recent agreement to escrow for 12 months its current 92.3 million shares in Unity,” Unity Mining managing director Andrew McIlwain said.
“LionGold has continued to demonstrate its confidence in Unity and is distinguishing itself as a partner of choice in the Australian junior gold space.”
$5.3m to drive Browns Range HRE project
Northern Minerals (ASX: NTU) is looking to raise $5.3 million through a Placement to sophisticated investors at 18 cents per share for its Browns Range heavy rare earth (HRE) project in northern Western Australia.
The funding initiative will include a Share Placement which has been supported by NTU’s major shareholder Australia Conglin International Investment Group (ACIIG).
“This funding increases the certainty and flexibility for Northern Minerals as we take Browns Range through the current feasibility studies towards production,” Northern Minerals managing director George Bauk said.
“We are pleased to have the ongoing support from our major shareholder ACIIG, which has reinforced its long term commitment to the project and development strategy.
The funding will be directed to a number of work programs as part of the feasibility study, as well as for general working capital.
As at 17 March 2014 the company had a cash position of $6.5 million, with the additional $5.3 million allowing the company to maintain momentum along its pathway to production.
The proposed sale of NTU’s Gardiner-Tanami gold assets to ACIIG for $2 million will now no longer proceed.
The gold asset sale was proposed as part of a funding package announced in February 2013, to raise a total of $58 million, with the backing of ACIIG.
During 2013, the company successfully raised $30 million through that funding initiative.
The proposed $26 million acquisition of a 16 per cent stake in the Browns Range HRE project by ACIIG (as announced in 2013) remains under consideration and subject to Northern Minerals Board and shareholder approval.
$1.7M Raising to advance Swedish graphite-graphene projects
Talga Resources (ASX: TLG) has received commitments to raise up to $1.7 million (before costs) via a placement.
The offer of 20 million ordinary shares has been made to sophisticated investors at an offer price of 8.5 cents per ordinary share.
Proceeds of the Placement are intended to be applied to graphite and graphene metallurgy, upscaling tests, economic studies, exploration and working capital.
“The proceeds will ensure the momentum already evident early in 2014 continues as we are now at the exciting stage of upscaling tests on graphene produced from our supergrade Nunasvaara deposit, as well as further metallurgical testwork on both the Nunasvaara and Raitajärvi graphite projects, both in Sweden,” Talga Resources managing director Mark Thompson said.
“We look forward to using the results to complete the preliminary economic study underway on Nunasvaara with a dual graphite-graphene focus.”
$4 million to advance Balama North
Triton Minerals (ASX: TON) has raised $4 million through a placement of shares to key sophisticated and institutional investors in Australia and internationally.
Funds raised from the Placement will be used to fund the first phase of the drilling and exploration program on the company’s graphite Balama North project in Mozambique.
A total of $4m was raised through the Placement, which will consist of the issue of just over 36.3 million shares at 11 cents per share.
Triton is now fully-funded to progress the first phase of the drilling program, exploration activities and studies at its Balama North graphite project in Mozambique.
As a result of the recent announcement about the substantial expansion in the exploration potential of the Balama North project, the RC and Diamond drilling programs have also been extended to drill test these new areas.
The exploration program will consist of completing the first phase of the exploration drilling, moving into potential resource definition drilling and modelling at the Nicanda Hill prospect.