Share placements and Rights Issues
THE FUND RAISER: The end of year fund raising activity continue to gather pace.
Share Purchase Plan closes heavily oversubscribed
A Share Purchase Plan for AusQuest Limited (ASX: AQD), closed heavily oversubscribed.
The company said it would undertake a process to scale-back applications to ensure the terms of the SPP are met.
The SPP was designed to allow shareholders to participate in the current round of fundraising on the same terms as an earlier placement to sophisticated investors.
In total, AusQuest anticipates it will complete a capital raising of $2.75 million (subject to shareholder approval its AGM to be held on the 26 November) to fund ongoing exploration and drilling programs at the company’s Fraser Range nickel-copper and Peru copper-gold projects and to provide additional working capital.
Preparations for drilling are currently underway at the Fraser Range nickel-copper project, which is designed to test four high-priority EM targets.
Drilling is expected to commence in early December.
Capital raising funds Cascada drilling
Azure Minerals (ASX: AZS) has received commitments for a share placement of 83.15 million fully paid ordinary shares at 26 cents each to raise $2.16 million.
The primary purpose of the capital raising is to support further drilling at the company’s Cascada and Promontorio projects in Mexico.
The placement will be made to institutions and professional and sophisticated investors, including prominent New York-based investment fund Drake Private Investments, which is already a substantial shareholder of Azure.
“The capital raising was very successful with the strong demand exceeding our expectations,” Azure Minerals managing director Tony Rovira said.
“I am particularly pleased with Drake’s ongoing commitment and I thank them for their strong and continued support.
“Capital raised fully funds Azure for planned drilling at Cascada and the Promontorio porphyry copper target.”
Closure of Non-Renounceable Rights Issue
Metals of Africa (ASX: MTA) closed its fully underwritten non‐renounceable rights issue with applications for just over 2.6 million ordinary shares raising gross proceeds of $261,285.80.
The company indicated a shortfall of the Rights Issue of 9.2 million ordinary shares, has been over‐subscribed and anticipates these shares will be allocated shortly by the company’s underwriter CPS Capital Group, raising a further $922,714.20.
The Rights Issue and subsequent Shortfall Placement will complete Stage 2 of the company’s three part capital raising.
This consists of a Placement of 7.5 million shares at 10 cents per share to raise $750,000, a non‐renounceable Rights Issue to offer 11.84 million at 10 cents to raise $1.184 million (in progress) and a Loyalty Option Issue to offer 53.3 million Loyalty Options at 1 cent per option to raise $532,800.
The net proceeds of these three capital raisings will be used to fund Metals of Africa’s ongoing exploration activities at its projects in Mozambique as well as providing on‐going working capital for the company.
Private placement raises $0.8 million
Northern Mining Limited (ASX: NMI) has raised $785,688 via a private placement of approx. 65.5 million shares at an issue price of 1.2 cents each with professional and sophisticated investors from Singapore.
One investor, Mr Chia Soon Loi took up 40 million shares (total $480,000), while Mr Gerald Woon Tai Hwee claimed just on 25.5 million shares (total $305,688).
“This follows the just concluded one for one pro-rata non-renounceable entitlement issue raising $5.24 million which has received strong support from the shareholders and investment community,” Northern Mining said.
“It shows the confidence investors have in the company’s assets, Board and Management.
“The company is now well placed financially to progress its activities.”
Placement funds Colpayoc metallurgical work
Wild Acre Metals (AASX: WAC) has received commitments to raise $320,000 by way of a placement of securities.
The placement will involve the issue of 6.4 million fully paid ordinary shares at an issue price of 5 cents each together with 6.4 million free Attaching Options exercisable at 15 cents each and expiring on 31 January 2017.
Directors will contribute $110,000 towards the placement with the issue of those securities and the Attaching Options being subject to shareholder approval at a general meeting to be held in late December 2013.
Funds raised from the placement will be applied primarily towards progressing the Colpayoc gold project, particularly metallurgical test work of composite materials from the Daylight Zone and establishment of community agreements to facilitate future exploration work.
Three stage funding package
Convergent Minerals (ASX: CVG) has signed a non-binding Memorandum of Understanding (MOU) with a domestic financing group to provide capital to develop the Blue Vein gold project at the company’s Mt Holland Goldfield in Western Australia.
The MOU proposes a debt-focused finance package to provide sufficient capital to finalise planning, plant and infrastructure construction and mine development to first ore.
In conjunction with this funding, Convergent has commitments for a placement of shares at 1.5 cents per share and is inviting all shareholders to participate in a Share Purchase Plan (SPP) also at
1.5 cents per share.
The placement and SPP will provide funding to continue development of the project.
Convergent expects that upon completion of all funding initiatives, first gold from Mt Holland should be poured within eighteen months, unlocking the forecast $38 million cash flow outlined in a recently completed scoping study.
The placement of 66.7 million shares at 1.5 cents per share to raise gross proceeds of $1 million has been made to sophisticated investors.
In addition to the placement, a SPP is being offered to existing shareholders 1.5 cents per share and will be capped at $1.2 million.
The company will scale back applications under the SPP if the total number of new shares applied for exceeds 80 million.