On Thursday multiple mining companies tapped investors to raise capital, including Metals Acquisition (ASX:MAC), which aims to raise $150 million via an oversubscribed placement.
Metals Acquisition issued 8.3 new CHESS Depositary Interests (CDIs) at $18 per new CDI, representing a 13% discount to the closing price of $20.70 on 8 October 2024.
Barrenjoey Markets is acting as the sole lead manager and bookrunner to the placement, while Sternship Advisers is acting as co-manager. Gilbert + Tobin is acting as legal advisor.
The proceeds will enable the $1.53 billion market capitalised company to optimise its balance sheet and de-lever following the acquisition of the CSA Copper Mine from Glencore (LSE:GLEN) mid last year.
Metals Acquisition adds that the proceeds will also provide additional flexibility to pursue strategic inorganic growth opportunities.
North America-focused explorer American West Metals (ASX:AW1) is conducting a placement to raise $7 million, via the issue of 77.8 million shares at $0.09 per new share.
The issue price represents an 18.2% discount to the last closing price of $0.111.
The proceeds will be used to build on the exploration and resource activities to date and continue unlocking the potential of the Storm Copper Project in Canada.
American West says combined with its cash at hand — $5.1 million as of 30 June 2024 — the company will use $1 million towards completing a Prefeasibility Study, upgrading Storm’s resource, and any permitting needed.
Meanwhile, $5 million will go towards next year’s exploration programs at the Storm Project.
Shaw and Partners and RM Capital will act as joint lead managers to the placement, with Shaw and Partners to also act as bookrunner.
As part of the placement, directors Dan Lougher, Dave O’Neill, and John Prineas have applied for 888,889 shares, subject to shareholder approval.
The company notes new shares issued under the placement will rank equally with existing shares.
Brazilian Critical Minerals (ASX:BCM) is also conducting a two-tranche placement and a non-renounceable rights issue to raise $3.5 million.
Under the placement, 50 million shares will be issued at $0.01 per placement share to raise $500,000.
Tranche one placement shares are expected to be issued on 17 October 2024, while tranche two will be issued on 26 November 2024 following an annual general meeting.
The one-for-three non-renounceable rights issue will be on the same terms as the placement to raise up to $2.9 million.
Eligible shareholders will be entitled to apply for one share for every three shares held at $0.01 per share.
Brazilian Critical Minerals, which has a market capitalisation of $10.79 million, says the proceeds will be used to fund progression of the Ema Rare Earth Project, business development, and general working capital.
Euroz Hartleys acted as the lead manager, broker, and corporate advisor to the placement and rights issue.
Meanwhile, base metals and gold explorer Somerset Minerals (ASX:SMM) entered into an agreement with RM Corporate Finance to provide up to two convertible loan notes totalling $1 million.
Proceeds will be used to complete aggressive exploration activities across the Prescott Project.
The company is targeting sedimentary-hosted copper deposits and Mississippi Valley-type deposits, as well as assessing complementary base metal assets.
Subject to shareholder approval, the loan notes will convert into ordinary Somerset shares at $0.008 or at 80% of the 15-day volume weighted average price.
Write to Aaliyah Rogan at Mining.com.au
Images: Metals Acquisition
