A range of mining companies announced capital raises yesterday (28 July) to begin the trading week, with Asara Resources (ASX:AS1) leading the charge with firm commitments for $25 million.
A two-tranche placement will comprise of 500 million shares issued at a price of $0.05 per share, which represents a 7.4% discount to its last trading price on 23 July and a 12.3% discount to the five-day volume weighted average price (VWAP) of $0.057.
Canaccord Genuity and Argonaut Securities are acting as joint lead managers and bookrunners to this placement, with Tamesis Partners as the co-manager.
The first tranche intends to raise the first $13.76 million through 275.29 million shares, to settle 1 August before allotment on 4 August. Tranche two will raise the remaining $11.24 million with 224.71 million shares allotted following shareholder approval.
A general meeting will be held in mid-September to approve the placement.
Proceeds will be used to fund exploration resource extension and infill drilling at the Massan prospect, reverse circulation and auger drilling at the Talic and Banan licenses and upgrades to the camp within the Kada Gold Project.
Similarly, Australian Strategic Materials (ASX:ASM) has returned commitments to raise $13 million from new and existing institutional investors and director participation.
Australian Strategic Materials will issue 23.02 million shares to investors at $0.56 per share to raise $11.97 million, representing a 21.6% discount to the last closing price and 20% to the five-day VWAP.
Chairman Ian Gandel and non-executive Director Dominic Heaton have also agreed to subscribe with $1 million and $30,000 commitments respectively. The company will issue another 1.77 million shares and 53,126 shares for each commitment.
The placement will settle on 31 July, with allotment for 1 August.
Australian Strategic Materials will use funds to expedite its new metals facility in the US, support the acceleration of the Korean Metals Plant, and help develop the Rare Earths Options Assessment of the Dubbo Project.
Norfolk Metals (ASX:NFL) has retained $3.5 million worth in commitments from investors and existing shareholders, aiding its whole acquisition of Transcendence Mining’s subsidiary Transcendentia Mining.
The company will issue 28 million shares at $0.12 per share in a two-tranche placement, representing a 14.3% discount to the 15-day VWAP of $0.14.
JP Equity Partners is acting as the lead manager to this placement.
Transcendence Mining directors and the Norfolk board have agreed to participate, subject to shareholder approval.
This acquisition will offer Norfolk the option over the Carmen Copper Project in Chile by funding $3 million in exploration expenditure across a three-year period, as reported by Mining.com.au.
The company will use funds to begin a maiden drilling program at the project, as well as conducting environmental studies and metallurgical test work.
Miramar Resources (ASX:M2R) is also seeking to raise around $1 million under a share purchase plan as the company expedites a drilling campaign at the 8-Mile prospect within the Gidji JV Project in Western Australia.
The offer price will reflect a 20% discount to the five-day VWAP before the issue date of shares, with up to 299.05 million shares on offer.
Eligible shareholders will be allowed to purchase up to $30,000 in shares, with the total shares on offer equalling 30% of Miramar’s share capital. The share purchase plan is expected to close on 11 August.
The 8-Mile target is located in the southern end of the Gidji Project, which the company currently holds 80% interest in.
Write to Maddison Elliott at Mining.com.au
Images: Australian Strategic Materials
