Raising funds and Tax Refunds

THE FUND RAISER: Bit of a mix this week with some companies raising funds, while others receive R&D rebates or government milestone payments.

Capital Raising Completed

Australian Bauxite (ASX: ABZ) completed a placement of 5.4 million fully paid ordinary shares at $0.21 cents per share to sophisticated, eligible and/or professional investors.
 
$1.134 million was raised to progress the company’s trial mining, mine establishment and development programs, and to provide working capital.

“Despite the recent difficult share market conditions, it has been most encouraging to see Australian Bauxite maintaining market support, especially from key supportive shareholders,” Australian Bauxite CEO Ian Levy said.

“We now have 1,600 shareholders, our share liquidity is high and we are in good shape for the crucial year ahead.

“In mid-January 2014, the global bauxite market will change in a positive way for ABx as Indonesian export bans and increased export taxes start taking effect.

“Our business plan has always been to capitalise on this once-only opportunity to become the world’s new supplier of gibbsite-rich bauxite.”

R&D incentive refund

Potash West (ASX: PWN) has received $547,582 refund from the Australian Tax Office.

The claim covers eligible test work for the 2013 financial year under the Federal Governments’ R&D tax incentive scheme.

The test work was instrumental in developing processes for the extraction of potash, phosphate and related products from glauconite, a common clay mineral.

Potash West controls the largest documented occurrence of glauconite, in the Dandaragan Trough, the exploitation of which the company claims has the potential to change the dynamics of the fertilizer supply industry, both within Western Australia and regionally.

Potash West’s research has also defined areas in which the glauconite was co-deposited with phosphate nodules which can be recovered as a feed for super phosphate production.


$25 million from global hedge fund for growth strategy

Alcyone Resources has reached an agreement with New York-based investment management firm, Platinum Partners for a $25 million revolving credit facility to fund Alcyone’s growth by way of value accretive acquisition opportunities in the precious metals space.

Having completed upgrading of the crusher facility it is Texas silver mine in Queensland, Alcyone has signalled its intention to build a portfolio of precious metals projects.

In line with this strategy, and with the support from Platinum, Alcyone has entered into an agreement to acquire the Red Arrow gold and silver mine in the United States for a total consideration of $5 million.

The acquisition is to be funded by way of a $1 million equity issue with Platinum, completed on execution, and a $4 million convertible loan note, to be drawn on release and grant of security changes.

The equity issue, to be completed with Alcyone’s existing placement capacity, consists of a placement of 200 million shares at a price of 5 cents per share to Platinum.


Horseshoe Metals awarded WA government drilling grant

Horseshoe Metals (ASX: HOR) has been awarded a $100,000 Western Australian Government grant to support a drilling program on the company’s 100 per cent-owned Kumarina copper project.

The co-funding will be utilised on a deep RC (Reverse Circulation Percussion) drilling program, targeting an untested magnetic anomaly, known as the Kumarina Deeps prospect, which is situated within the Backdoor Formation of the Collier Group and is thought by Horseshoe Metals to be prospective for a deep intrusive-related base metal system.

The drilling program will test for mineralised zones within the Backdoor Formation that was previously not considered as a prospective host rock unit.


Midas receives cash offer for Mt Philp

Midas Resources (ASX: MDS) has received a cash offer for its 100 per cent-owned Mt Philp iron ore deposit from private mining company Developed Iron Ore (DIO).

This offer is subject to a 90 day due diligence period to commence on the 14th of January due to the approaching Christmas break.

Exclusivity has been granted to DIO during this period for a non-refundable cash payment of
$50,000.

The offer consists of; A Purchase price of $1.5 million; $500,000 to be paid within 60 days of due diligence being completed; and $1million to be paid six months after the transfer of the first payment.

DIO will grant in favour of Midas a royalty of 0.5 per cent the gross proceeds of the sale of iron extracted from the Mt Philp asset.

This offer is not subject to any capital raising from DIO. The exclusivity fee is in addition to the
$1.5million in cash.

It is intended that all interests to iron ore on the Mt Philp asset within the area of application for Mineral Development License (MDL) 471 will be transferred to DIO, however legal ownership of MDL471, together with the rights to all minerals apart from iron ore, will remain with the current tenement holder being Midas’s wholly-owned subsidiary, Mt Dockerell Mining.