The Capital Crunch: 29Metals secures multi-million dollar funding from Glencore

It has been a busy day for capital raising and funding-related news, as copper-focused 29Metals (ASX:29M) and Glencore International (LON:GLEN) agree on the binding terms for a US$50 million ($77.62 million) offtake finance facility. 

29Metals, which has a market capitalisation of $305.23 million, says the funds will be available for drawdown from financial close and will provide additional liquidity as the Capricorn Copper Mine moves into suspension and the company prepares for its restart of operations. 

As this news service previously reported, the company had to suspend operations at the mine due to extreme weather conditions. 

At the same time, renewable energy-focused Mayur Resources (ASX:MRL) has executed definitive debt financing agreements with for US$155 million, which will fully fund the Central Lime Project. 

Appian Capital Advisory has agreed to provide a US$115m senior secured loan and royalty financing to Mayur, subject to conditions precedent on items including but not limited to product offtake and finalisation of project documentation with the PNG government.

Together with Vision Blue’s previously announced US$40 million equity funding, the financing provides 100% of the remaining funding required to complete Central Lime Project’s construction works to achieve nameplate annual base case production capacity of 400,000 tonnes.

Funds will cover construction costs, along with an allocation for expected further expansion. First production from the Central Lime project is expected in around 18 months following financial close. 

Meanwhile, gold-focused explorer Wia Gold (ASXLWIA) has raised $16.9 million through a placement of about 211 million shares in the company at $0.08 per share. 

Proceeds will be used on resource growth and drilling to upgrade the confidence at the Kokoseb gold discovery in Namibia, plus broader portfolio exploration activities. 

The company’s Executive Chairman Josef El-Raghy and Non-executive Director Mark Arnesen subscribed for $900,000, which is subject to shareholder approval 

Viridis Mining and Minerals (ASX:VMM) also completed a heavily oversubscribed $8 million placement through an equity issue of 6.4 million shares at $1.25 per new share.

Funds raised will be used to accelerate work at the Colossus Project in Minas Gerais, Brazil, including an expanded drilling program, resource definition, and Scoping Study. 

CEO Rafael Moreno says a key focus will be the Northern Concessions, which recently achieved a 65% recovery average for dysprosium and terbium — as previously reported

Write to Aaliyah Rogan at Mining.com.au   

Images: Mayur
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.