The raisings for junior companies continue
THE FUND RAISER: Another good week on the bourse for junior fund raising.
Alcyone secures cornerstone investor
Alcyone Resources (ASX: AYN) has raised $12.832 million, after placing $4.875 million of its recent Rights Issue Shortfall with Malaysian-listed investment holding company, Notion VTec Berhad (MK:NVB).
Notion has agreed to subscribe for $4.875 million of the Rights Issue Shortfall at 0.5 cents per share under the Rights Issue prospectus to acquire 19.9 per cent of Alcyone’s outstanding shares.
In addition Notion has a 6-month option to subscribe for $2.5 million in interest bearing promissory notes which, subject to shareholder approval and an Independent Expert Report, would allow Notion to increase its stake in Alcyone to 30 per cent of Alycone’s issued share capital.
With its equity investment, Notion has the right to nominate one director to the Board of the company.
“Given current conditions in commodity and equity markets for junior mining companies, the success of this Rights Issue highlights the strong value proposition of the company as a low-cost high-grade Australian silver producer,” Alcyone Resources non-executive chairman Paul D’Sylva said.
“This has been reinforced by the commitment from our new cornerstone shareholder, Notion, who we welcome on board.”
Attila raises $7 million
Attila Resources (ASX: AYA) has received commitments to raise up to $7 million (before costs) through the issue of up to approximately 11.67 million shares at 60 cents per share to institutional and sophisticated investors.
Funds raised will be applied primarily towards the completion of a Bankable
Feasibility Study (BFS) on Attila’s Gurnee property at the Kodiak coking coal project, completion of JORC resources on the company’s Seymour project, Upper Thompson and Project X and general working capital purposes.
“We are very pleased with the strong support received for the Placement which ensures Attila remains well funded beyond completion of the BFS on the Kodiak coking coal project,” Attila Resources executive director Evan Cranston said.
“Funds raised pursuant to the Placement will also enable Attila to advance our other projects in the Cahaba basin which have the potential to further improve the already robust economics of the Kodiak coking coal project.
“Our recently completed Pre-Feasibility Study highlighted the technical and economic strength of the Kodiak coking coal project.
“We are looking forward to fast tracking the newly acquired Upper
Thompson seam and Project X into the future production profile of our exciting hard coking coal project.”
Northern Mining to raise $5.24 million
Northern Mining (ASX: NMI) announced a non-renounceable rights issue of up to approximately 436.5 million new shares at an issue price of 1.2 cents per share to raise approximately $5.24 million.
The rights issue is underwritten by Patersons Securities for approximately $4.05 million.
Patersons will only be relieved of its underwriting obligation once applications for approximately $1.19 million have been received.
Provenance Finance Limited, an entity controlled by the company’s non-executive chairman Tony Ong, has agreed to sub-underwrite 137.3 million shares, which includes its entitlement.
Funds raised under the rights issue will be partly used to advance exploration in the company’s East Kalgoorlie project in Western Australia by a combination of geology, geophysics and targeted drilling.
The company has completed a review of all prospects and has indicated its future exploration emphasis will be on following up the project’s prospective gold anomalies at Blair North, Kanowna Lights and the Snake Hill prospects.
Placement to Aterra Capital
Finders Resources (ASX: FND) has entered into a subscription agreement with Aterra Investments Limited to raise $1.5 million by the issue of 7.5 million shares at 20 cents per share.
Aterra is part of Aterra Capital, a geo-diversified investment company which invests in the metals and mining sector in developed and emerging markets.
Finders said the placement to Aterra will provide additional funds for the upgrading and restart of the existing SX-EW plant on Wetar Island, completing the update of the bankable feasibility study and bank financing, and for general working capital.
Provident Capital Partners has also exercised its right to take up its pro rata entitlement pursuant to the original subscription agreement with Provident announced in December 2012.
This amounts to approximately 1.6 million shares at 20 cents each for total proceeds of $319,138.
“We welcome Aterra as a shareholder,” Finders Resources managing director Barry Cahill said.
“We are pleased to have the support of investors such as Aterra and Provident as we advance towards the financing and development of the Wetar copper project.”