Numerous mining companies decided to conduct institutional placements on Friday (1 November), including Capricorn Metals (ASX:CMM) which aims to raise $200 million.
Capricorn, which has a market capitalisation of $2.38 billion, will issue 33.33 million shares at $6 per share — representing a 4.9% discount to the closing price of $6.31 on 29 October and a 5.8% discount to the five-day volume weighted average price (VWAP) of $6.37.
The funds will be used towards development and expansion activities at the Karlawinda and Mt Gibson projects in Western Australia.
At Karlawinda, the company aims to increase annual processing capacity by 2.5 million tonnes to 6.5 million tonnes for a higher output of 150,000 ounces per year.
Funds will also be used towards completing a detailed plant design, engineering and drawings as well as for purchasing long lead equipment for both projects.
At Mt Gibson, funds will be used to continue resource and reserve growth, expedite drilling in areas where there is resource growth potential and potential underground resource and mining opportunities.
Argonaut Securities will act as sole global coordinator, joint lead manager and bookrunner, while Bell Potter Securities will also act as joint lead manager and bookrunner.
Barrenjoey Markets and Jarden Australia will act as co-managers to the placement.
Ironbark Zinc (ASX:IBG) has also secured firm commitments from institutional and sophisticated investors to raise $10 million, subject to shareholder approval.
Under the placement, 50 million shares will be issued at $0.20 per share, together with two free unlisted attaching options for every three placement shares subscribed for.
The issue price represents a 20% discount to the last traded price of $0.25 on 29 October and a 46.8% discount to the five-day VWAP of $0.376.
Ironbark Zinc will use the funds to pursue ongoing advancements across its existing projects. The company aims to deliver new copper, gold, and critical mineral discoveries from the existing asset base predominantly focused on Mt Isa and Perseverance.
Funds will also go towards identifying and assessing new business development opportunities and general working capital.
Argonaut and Taylor Collison will act as joint lead managers to the placement.
Following Friday’s announcement, Ironbark’s share price had increased 50% to $0.003 per share.
Rumble Resources (ASX:RTR) is another mining company conducting an institutional placement to raise $7.1 million to advance its Western Queen Project in Western Australia.
Under the two-tranche placement, 157.4 million shares will be issued at $0.045, representing a 19.6% discount to the last closing price of $0.056 on 29 October.
Tranche one will comprise the issue of 121.6 million shares to raise $5.5 million, while tranche two will comprise the issue of 35.8 million shares to raise $1.6 million.
Rumble Resources, which has a market capitalisation of $43.76 million, will use the funds to conduct a combined reverse circulation and diamond drilling program, totalling 20,000m, at Western Queen.
Funds will also be used for progressing the Western Queen South open pit mining to a final investment decision, as well as tungsten assaying and completing a maiden resource estimate for the project.
Canaccord Genuity and MST Financial Services will act as joint lead managers to the placement.
Meanwhile, Cobre (ASX:CBE) aims to raise $4.6 million via the issue of 71.4 million shares at $0.065 per share to institutional, sophisticated, and professional investors.
The issue price represents an 18.8% discount to the last closing price of $0.080 on 29 October and a 19.8% discount to the five-day VWAP of $0.0811.
Cobre will use the new funds, combined with existing cash, to expedite exploration on the Ngami and Okavango projects in the Kalahari Copper Belt in Botswana, as well as the High-Purity Quartz Project in Western Australia.
Placement participants will also be entitled to apply for one free attaching option, exercisable at $0.098 within 18 months, for every two new shares held.
Canaccord Genuity and CPS Capital Group will act as joint lead managers and joint bookrunners.
Write to Aaliyah Rogan at Mining.com.au
Images: Capricorn Metals and Ironbark Zinc
