Arafura Rare Earths (ASX:ARU) completed the second tranche of a $20 million placement, one of a number of capital raisings taking place last week as explorers and developers look to shore up funds.
The company issued 36.26 million shares at $0.16 each to sophisticated and institutional investors, raising $5.8 million.
Arafura Rare Earths, which has a market capitalisation of $371.85 million, will allocate the funds to activities required to support critical path work, compliance and progressing improvement ideas that reduce capital, schedule and risk.
The funds will provide a sufficient cash runway through to mid next year, allowing Arafura to focus on finalising its strategic equity funding and offtake initiatives required for a final investment decision for its Nolans Rare Earths Project in the Northern Territory.
On 25 July, tranche one of the placement was completed, comprising the issue of 88.73 million shares.
Arafura Rare Earths is also undertaking a share purchase plan (SPP) at the same price as the placement to raise $7 million, with the ability to accept oversubscriptions of up to an additional $3 million.
The SPP is expected to close on 9 September 2024, with results announced on 11 September.
Gold-focused explorer Nexus Minerals (ASX:NXM) is conducting a $4.1 million placement to advance its Wallbrook Gold Project in Western Australia.
The company has received firm commitments for a placement of 97.3 million shares at $0.042 each, representing a 2.4% premium to the last traded price and an 8.8% discount to the 15-day volume weighted average price (VWAP).
The funds will be used for ongoing aircore, reverse circulation, and diamond drilling, alongside geophysical surveys, exploration work and mine studies at Wallbrook.
Nexus Minerals, which has a market capitalisation of $15.95 million, adds that the funds will also support minimum expenditure requirements at the Pinnacles Gold Project and the New South Wales and Victorian projects.
Canaccord Genuity and Bell Potter Securities will act as joint lead managers and bookrunners to the placement.
Magnesium developer Latrobe Magnesium (ASX:LMG) has increased the limit of its project finance facility by $3 million to $28 million and has extended the maturity date to 31 December 2027.
Latrobe, which has a market capitalisation of $75.15 million, says the additional funding will provide operational working capital for ongoing magnesium oxide production, which is expected to ramp up in October this year.
As consideration for the new facility terms, the company has agreed to issue 33.77 million options with an exercise price of $0.079 and an expiry date of August 2027.
Meanwhile, Golden Deeps (ASX:GED) has wrapped up a $1.78 million placement to fund further drilling for copper-zinc sulphides at its Havilah Project in New South Wales.
The company issued 30.25 million shares at $0.059 per share. Subscribers will also receive one free attaching option exercisable at $0.10 before 31 October 2029, subject to shareholder approval.
PAC Partners Securities and Peak Asset Management acted as joint lead managers to the placement.
Golden Deeps is an explorer and developer focused on the terranes of the Lachlan Fold Belt of New South Wales and the Otavi Mountain Land of Namibia.
Write to Aaliyah Rogan at Mining.com.au
Images: Arafura Rare Earths
