Raising funds and Tax Refunds
THE FUND RAISER: The optimistic start to the New Year continues with junior explorers attracting plenty of financial backing.
Southern Hemisphere Mining raising $3.4 million
Southern Hemisphere Mining (ASX: SUH) is carrying out a capital raising up to $3.4 million to finance the next phase of exploration, evaluation and development of its copper-gold portfolio in central Chile, South America.
The company has already raised up to $1.2 million through a placement of shares to sophisticated and professional Investors at 4.5 cents per new share.
It also intends to undertake an underwritten non-renounceable 1 for 4 entitlement issue at the same price to raise approximately $2.2 million amounting to a total capital raising of $3.4 million before costs and expenses.
The funds will be used primarily to meet the company’s share of upcoming drilling expenses and prospect acquisition costs at the 50/50 Los Rulos Joint Venture with Lundin Mining, as well as for general working capital.
The Los Rulos JV has recently acquired three highly prospective IOCG-style copper-gold prospects in central Chile as part of a growing portfolio which is in the same region as Southern Hemisphere’s Llahuin project, where it has already established a substantial copper-gold resource.
Southern Hemisphere is currently free-carried on ongoing exploration activities at the Mantos Grandes project and the Llahuin project.
“Given the current market for junior resource companies, we are pleased with the strong support shown in both the Placement and the underwriting of the Rights Issue,” Southern Hemisphere managing director Trevor Tennant said.
“I believe this reflects the quality of our projects and the strong pipeline of news flow which we expect this year.”
Segue Resources completes Institutional Placement
Segue Resources (ASX: SEG) has completed a placement to Australian institutional and sophisticated investors to raise a total of $900,000 by the issue of 150 million ordinary shares at 0.6 cents per share together with a 1 for 2 attaching option exercisable at 1.8 cents per share.
The Placement was made to institutional investors including specialist microcap resources investment manager, Acorn Capital Limited, which will own approximately 8.1 per cent of the issued capital of Segue.
The proceeds from the Placement will be used to fund exploration at the Plumridge nickel project in the Fraser Range Province of Western Australia.
Kibaran completes $1.125 million Placement
Kibaran Resources (ASX: KNL) has placed 9 million fully paid ordinary shares at 12.5 cents per share, with sophisticated investors to raise $1.125 million.
Investors will receive one free attaching option for every two shares subscribed exercisable at 20 cents each and expire eighteen months from the date of issue.
The funds raised will enable the company to complete a drilling program to upgrade the Epanko resource at Mahenge, from inferred to indicated and further advance metallurgical studies in order to determine optima grind size and concentrate.
The company will also use part of the funds to advance several potential opportunities focused on the consolidation of other graphite prospects in Tanzania it is currently reviewing.
Orinoco Gold raising $4 million
Orinoco Gold (ASX: OGX) announced a capital raising of up to $4 million to underpin the next key phase of exploration and development of the company’s Faina Goldfields project in central Brazil, including plans to advance its Cascavel gold project.
The company has received firm commitments for a placement of just under 11.48 million shares at 10 cents each to raise approximately $1.14 million before costs to underpin the retention payment of US$950,000 in relation to the Curral de Pedra project.
The funds raised will be used to secure the company’s 70 per cent interest in the Curral de Pedra project by paying the cash portion of the final retention payment, being US$950,000 (due April 2014), progress the next key phase of exploration, evaluation and project development activities at the company’s Brazilian exploration projects located in the Faina Goldfields, as well as to fund the costs of the issue and for general working capital purposes.
“Despite continuing difficult market conditions for junior resource companies, we have received strong interest and support from investors, enabling us to complete this placement in a timely fashion to address our immediate funding needs,” Orinoco Gold managing director Mark Papendieck said.
“At the same time, we are offering all shareholders the opportunity to participate in this capital raising on the same terms.
“This provides our existing investors with the ability to increase their holdings on attractive terms as the company moves ahead with plans to accelerate the next stage of development of the high-grade Cascavel project, including the commencement of an exploration decline and Scoping Study and completion of a maiden JORC-compliant Mineral Resource.”