As the new week begins, several mining companies are seeking to raise equity via a placement.
Galan Lithium (ASX:GLN) is conducting a $14 million placement for the development of its Hombre Muerto West (HMW) Project in Argentina.
The $119.78 million market capitalisation company, says the capital will provide financial flexibility for the ongoing development at the HMW phase one construction.
The company is also finalising negotiations of alternative funding solutions, including debt and prepayment facilities that will enable completing phase one.
Under the placement, Galan Lithium will issue 56.521 million shares at $0.23 per share, with participants receiving one new unlisted option for every two shares subscribed.
The new options will be issued, subject to shareholder approval at a general meeting in early to mid-June 2024. The new options will have an exercise price of $0.35 and a two-year expiry date.
Canaccord Genuity and Petra Capital acted as joint lead managers and bookrunners to the placement.
Magmatic Resources (ASX:MAG) is also conducting a placement to raise $3 million to fund gold and copper exploration at the Wellington North and Parkes Gold projects.
Exploration work at these projects will occur in parallel with a farm-in and joint venture currently in operation at the Myall Project, with Fortescue (ASX:FMG) spending up to $14 million over a six-year period to earn 75% interest.
Under the placement, Magmatic will issue 35.4 million new shares at $0.085 per new share, representing a 15% discount to the last closing price of Magmatic’s shares on 15 May.
Existing 19.99% shareholder FMG Resources has committed to subscribe for new shares to maintain its existing shareholding.
Settlement of new shares is expected to occur on 24 May 2024.
CuFe (ASX:CUF) is also seeking to raise $3 million via a placement to advance work on its Tennant Creek Copper, North Dam Lithium, and West Arunta Niobium projects.
Under the placement, 187.5 million shares will be issued at $0.016 per share, with participants receiving one free-attaching option for every two shares held at $0.025 and a three-year expiry date.
The issue price represents a 16.8% discount to the five-day volume weighted average price (VWAP).
Copeak and Evolution Capital acted as corporate advisors and joint lead managers.
Tennant Creek lies in the Northern Territory, while the North Dam and West Arunta project’s lie in Western Australia.
Meanwhile, Victory Metals (ASX:VTM) has received firm commitments from professional and sophisticated investors to conduct a placement to raise $2.5 million.
Funds raised will be used to advance exploration work across its assets, including advancing Victory’s flagship North Stanmore heavy rare earths project.
The company will also apply the funds to complete an updated Mineral Resource Estimate, conduct further project study work and metallurgical testwork, and general working capital purposes.
Under the placement, Victory will issue 11.363 million shares at $0.22 per share, representing a 12.3% discount to the 15-day VWAP.
Write to Aaliyah Rogan at Mining.com.au
Images: Galan Lithium
