Hamelin Gold (ASX:HMG) today (5 May 2023) says an equity raise to help fund exploration at its West Tanami Project in Western Australia has been backed by several significant shareholders.
Mining.com.au exclusively reported yesterday the company is seeking to raise up to a maximum of $3.75 million via a two tranche placement.
This news service reported yesterday that Hamelin Gold’s 2 largest shareholders Gold Fields (JSE:GFI) and Silver Lake Resources (ASX:SLR), which each have a 10% stake in the company, have provided binding commitments to subscribe for $2.5 million in the placement with up to $1 million to settle in tranche two.
In today’s announcement to the ASX, Hamelin Gold has confirmed the cornerstone investment from both significant shareholders and their firm commitments to raise $3.75 million.
As reported, up to a maximum of 37.5 million new fully paid ordinary shares will be issued in Hamelin Gold at $0.10 per share under the placement.
Hamelin Gold says tranche one is raising $2.75 million while tranche two is raising $1 million, subject to shareholder approval at an extraordinary general meeting (EGM) expected to be held in late June 2023.
The company has also launched a share purchase plan (SPP) to raise about $1 million, also at an issue price of $0.10, which is expected to be open to existing shareholders imminently.
The company’s directors have made commitments to subscribe for $200,000 worth of new shares at the same issue price as the placement.
Canaccord Genuity (Australia) and Chieftain Securities (WA) acted as joint lead managers to the placement.
“The strongly supported placement allows us to accelerate exploration at the West Tanami Project…”
Upon completion of the equity raise, Hamelin says it will be well funded to accelerate exploration activities, with the funds raised going towards a reverse circulation (RC) and diamond drilling program along the Sultan gold corridor.
Commenting on the placement, Bewick says: “The strongly supported placement allows us to accelerate exploration at the West Tanami Project where we have made a new high-grade gold discovery at the Sultan prospect and identified a suite of new camp scale gold targets.
The 2023 field programs will commence shortly with major drilling and geochemical programs planned. We thank all our shareholders for their continued support and look forward to providing regular updates on the progress of our field programs.”
Hamelin Gold is an ASX-listed mineral resource exploration company established to execute exploration at the wholly owned West Tanami Gold Project in Western Australia.
Images: Hamelin Gold Ltd
