Kicking off the week, several ASX-listed mining companies are raising capital or restructuring financing facilities, such as Australian explorer KGL Resources (ASX:KGL) which is conducting an entitlement offer to raise up to $15.1 million.
Under the proposed four for 14 pro-rata non-renounceable offer, up to 151.3 million new shares will be issued at $0.10 per share.
Funds raised will help the $65.23 million market capitalisation company begin production in order to coincide with chronic copper shortfall, continue drill plans to extend the life of the Jervois Project in the Northern Territory, and undertake exploration at depth.
KGL adds that the offer is not underwritten, and is subject to a minimum raise condition of $6 million. The company’s major shareholder, KMP Investment, has committed to take up their entitlements in full, which will provide $4.8 million in funding.
Meanwhile, Australian gold producer Red 5 (ASX:RED) has entered into a restructured hedge facility and security package, and repaid its outstanding loans under the legacy Red 5 syndicated facility agreement.
Red 5, which has a market capitalisation of $2.55 billion, paid $92.9 million yesterday, noting that a scheduled amortising repayment of $7.8 million was made on 28 June 2024.
The company has also restructured the hedging from the legacy Silver Lake Resources common terms deed.
The gold hedging will be provided by a syndicate of banks, encompassing Commonwealth Bank of Australia, the Hongkong and Shanghai Banking Corporation, and Macquarie Bank. All of these banks were incumbent providers to either Red 5 or Silver Lake.
As of 30 June 2024, Red 5 had $453.7 million in cash and bullion.
North American-focused explorer Dateline Resources (ASX:DTR) is conducting a two for three renounceable rights issue to raise up to $5.8 million.
Under the offer, eligible shareholders will be able to purchase shares at $0.006 per share. For every two shares subscribed for, participating shareholders will receive one attaching option to acquire one share, with an exercise price of $0.02 and a 24-month expiry date.
Funds raised will be put towards further exploration work at the Colosseum Gold and Rare Earths Project in California, completing a mine planning study, and reducing the company’s outstanding debt.
Mahe Capital has been appointed as lead manager to the rights issue.
Meanwhile, oil and gas-focused producer and US explorer Xstate Resources (ASX:XST) has received a final payment of $1.973 million for the divestment of its 25% working interest in the Red Earth Assets in Alberta, Canada.
Chairman Andrew Childs says the sale recapitalised the company without any additional shareholder dilution.
“The proceeds from this transaction are being deployed to expedite the acquisition and advancement of high-impact exploration and appraisal opportunities,” he says.
Write to Aaliyah Rogan at Mining.com.au
Images: KGL Resources, Red 5, Dateline Resources
