Rattling the Tin
The Bourse Whisperer: Share Purchase Plans to raise capital are coming thick and fast at the moment. Here’s a couple to interest the Roadhouse this week.
Share Purchase Plan
Cassini Resources (ASX: CZI) announced its intention to make a Share Purchase Plan Offer (SPP) to its Shareholders to raise up to $1.3 million.
The SPP entitles Eligible Shareholders in the company, irrespective of the size of their shareholding, to purchase up to $15,000 worth of shares at an issue price of 10 cents per share free of brokerage and commission.
Cassini said that funds raised by the SPP will give the company flexibility to maintain exploration momentum after its initial program, and will provide capital to pursue additional opportunities as they arise.
Specifically, the funds will be used to:
Progress Cassini’s West Musgrave project beyond the current exploration program;
Fund other ongoing exploration expenditure at the discretion of the Directors, dependent on current exploration program results; and
Provide for the general working capital requirements of the company.
“This offer comes at an exciting time in the company’s short history, as it prepares to commence its first drilling program on the most advanced of its nickel and copper sulphide targets, the Pandora Target, at the West Musgrave,” Cassini Resources chairman Mike Young said.
“This target represents a possible, near‐term opportunity for exploration success in an area of Western Australia that remains significantly under‐explored.
“Any exploration success at Pandora is expected to deliver significant value for shareholders.”
The invitation to participate in the SPP is intended to be dispatched to Eligible Shareholders shortly.
Shareplacement raises $1.68M and proposed SPP
Aguia Resources (ASX: AGR) announced it has received firm commitments for a placement of 33.7 million new ordinary shares at five cents per share to raise a total of $1.7 million before costs.
The company said the placement has been well supported by a number of new and existing sophisticated and professional investors.
As part of the placement, the directors of the company have agreed to subscribe for 2.05 million shares totalling $102,500.
The issue of the shares to the directors will be subject to shareholder approval at a meeting expected to be held in the next two months.
Aguia said the funds raised under will be used to supplement the company’s existing working capital and to provide funding for further testing of its Rio Grande phosphate projects in Southern Brazil.
Aguia also announced it proposes to offer shareholders the opportunity to participate in a capital raising on the same terms as the placees via a share purchase plan (SPP).
Further details on the SPP will be released in the coming weeks.
“The success of this placement, including participation by the majority of the company’s directors and several new investors, at what is a difficult time for junior resource companies, is a positive reflection on the quality of the company’s exploration assets,” Aguia Resources managing director Simon Taylor said.
Capital Raising
NSL Consolidated (ASX: NSL) announced the company has secured commitments for the placement of 23 million fully-paid shares at an issue price of two cents per share, raising $460,200.
The raising was supported by existing major shareholders, Board and management.
The placement will occur in two tranches, with 16.5 million shares being issued under the company’s 15 per cent placement capacity and the balance (Board of Directors contribution) subject to shareholder approval in early August 2013.
One free attaching option will be granted for each share allotted under the placement, subject to the receipt of shareholder approval.
The exercise price of the options will be set at four cents, with an expiry date of 30 June 2015.
The funds raised will be utilised by the company as it works with Vijay in relation to the fulfilment of Vijay’s financial commitments under the Joint Venture Agreement (JVA) and while the company continues to investigate alternative funding solutions.
The company remains in incomplete and confidential discussions with Vijay, which continues to fulfil its operational commitments under the JVA, by mining and delivering ROM (Run of Mine) material to the NSL stockyard.