Saturn Metals (ASX:STN) has received firm commitments for a $100 million two-tranche placement to advance its Apollo Hill Gold Project in Western Australia.
The company will issue approximately 250 million shares at $0.40 each, an 11.1% discount to its closing price of $0.45 on 24 July and a 10.1% discount to its 10-day volume-weighted average price of $0.445.
Saturn’s four largest shareholders invested a combined $42.5 million. New cornerstone investor Golden Crane Holdings committed approximately $48.6 million for 121.5 million shares and is expected to hold about 15% following completion of the placement and a fully subscribed share purchase plan (SPP).
Saturn will offer eligible Australian and New Zealand shareholders the opportunity to apply for up to $30,000 of shares through a non-underwritten SPP targeting a further $5 million at the placement price.
Managing Director Ian Bamborough says the raising strengthens Saturn’s balance sheet as it advances Apollo Hill.
“This funding will enable the company to continue taking important steps along the development pathway with the aim of unlocking the full value potential of the project,” Bamborough says.
Saturn says it plans to allocate $39.4 million to long-lead construction items, $16.2 million to construction readiness and execution, $15.6 million to working capital and corporate and placement costs, and $12 million to front-end engineering and design.
The company also notes further funding is earmarked for exploration drilling, permitting and approvals, site establishment, and tenement and landholding costs.
Tranche one comprises about 63.8 million shares raising approximately $25 million, with allotment expected on 6 August. Tranche two comprises about 186.2 million shares raising approximately $75 million and requires shareholder approval at a meeting expected on 17 September.
About $40 million of tranche-two shares issued to various parties is expected to settle later, following the Foreign Investment Review Board process for Golden Crane.
The placement was partially underwritten by sole lead manager and bookrunner Petra Capital, with Canaccord Genuity (TSX:CF) acting as co-lead manager.
Saturn is progressing a Definitive Feasibility Study targeted for release later this year. Apollo Hill hosts a mineral resource of 174Mt @ 0.51 grams per tonne gold (Au) for 2.83 million ounces (Moz), including 2.19Moz in the measured and indicated categories.
Write to France Pinzon at Mining.com.au
Images: Saturn Metals
