Hamelin Gold (ASX:HMG) has received firm commitments for an estimated $8 million placement (before costs) to fund exploration programs across its Western Australia gold projects.
The placement involves the issue of around 49.6 million new fully paid ordinary shares, to be completed in a single tranche using existing placement capacity.
Directors have committed to subscribe for approximately $321,000 through the issue of roughly 2 million new shares, subject to shareholder approval at a general meeting scheduled for late September.
The placement was priced at $0.16 per share, representing a 10.2% discount to the 15-day volume weighted average price of $0.178 per share and a 13.5% discount to the company’s closing price of $0.185 per share on 12 August.
Major shareholders Gold Fields (JSE:GFI) and Vault Minerals (ASX:VAU) also participated in the placement, subscribing for approximately $1.5 million and $600,000, respectively.
Following completion of the placement and director participation, Gold Fields’ interest increases to approximately 17.7% while Vault’s stake rises to approximately 10.9% of Hamelin’s issued capital.
According to Hamelin, funds will be earmarked for campaigns across its 100%-owned Day Dawn Gold Project, Venus Gold Project, West Tanami Project, and Cue regional projects, alongside working capital.
Managing Director Peter Bewick says the company appreciates the ongoing support from existing shareholders and welcomes new investors.
“Drilling activities are in progress at our Day Dawn Gold Project and plans are well advanced to complete programs at the Venus Project near Cue and in the West Tanami,” Bewick says.
“We look forward to providing shareholders with updates on the progress of these activities and as results are received.”
Chieftain Corporate and Argonaut Securities acted as joint lead managers and joint bookrunners for this placement.
Hamelin Gold is a Perth-based explorer with landholdings in the Tanami, Paterson, and Yilgarn gold provinces of Western Australia.
Write to Paula Fabe at Mining.com.au
Images: Hamelin Gold
