Hamelin Gold (ASX:HMG) has launched a share purchase plan (SPP) and equity raise in which its two largest shareholders have committed to coming on board with a cornerstone investment.
The company is seeking to raise about $2.75 million and up to a maximum of $3.75 million via a two tranche placement. About 27.5 million (and 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’s largest shareholders Gold Fields (JSE:GFI) and Silver Lake Resources (ASX:SLR), which each have a 10% shareholding 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.
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 in about 10 days’ time.
Speaking to Mining.com.au, Managing Director Peter Bewick says the commitments by Gold Fields and Silver Lake is a testament to the quality of the company’s assets and an endorsement of the work being undertaken across its portfolio.
the commitments by Gold Fields and Silver Lake is a testament to the quality of the company’s assets and an endorsement of the work being undertaken across its portfolio
The board intends to subscribe for about $200,000 in the placement, subject to shareholder approval.
Canaccord Genuity (Australia) and Chieftain Securities (WA) are joint lead managers and bookrunners for the capital raise. Chieftain Securities was retained as co-manager for Hamelin Gold’s 2021 initial public offering (IPO).
The placement and SPP are not underwritten.
The MD tells this news service that with the capital raising now underway, Hamelin Gold has a drill rig in transit heading to site at the West Tanami Project, ready to start turning dirt next week.
Proceeds from the capital raising will be used to fund reverse circulation (RC) and diamond drilling along the Sultan gold corridor, as well as for phase two RC drilling at the Fremlins, Newkirk, and Olsen prospects. It will also be deployed towards follow-up initial REE results from Harkonan, Le Beau and Schultz, and to extend the geochemical coverage across new regional targets.
Hamelin Gold is an ASX-listed exploration company based in Perth, Western Australia. The company has a landholding of 2,500km-square in the Tanami Gold Province, which is prospective for tier-one gold deposits and for rare earth element deposits.
The Tanami hosts Newmont’s ‘world-class’ +14Moz Callie Operations in the Northern Territory and the Browns Range REE deposit in WA. More than 25Moz of gold has been discovered in the Tanami on the Northern Territory side of the border.
Write to Adam Orlando at Mining.com.au
Images: Hamelin Gold Ltd & iStock
