On Monday, several ASX-listed mining companies announced they were raising capital, including explorer and developer KGL Resources (ASX:KGL) which raised $8.08 million via an entitlement offer.
Under the non-renounceable entitlement offer, which originally aimed to raise $15.1 million, shares were issued at $0.10 per new share.
KGL, which has a market capitalisation of $56.72 million, received valid applications under the offer for about 80.82 million shares. The applications include participation by major shareholder KMP Investments, which contributed $4.79 million.
The issue of new shares is scheduled to occur on 7 August and will begin trading the following day.
KGL plans to use the funds to position itself to begin production to coincide with Chronic Copper Shortfall, continue drilling plans to extend the life of the project, and conduct exploration at depth.
Battery minerals explorer and developer Morella Corporation (ASX:1MC), which seeks to raise up to $4.45 million.
Morella Corporation is conducting a non-renounceable rights issue to fund further mineral exploration at the Mallina, Tabba Tabba, and Mt Edon Joint Venture projects in Western Australia, as well as the Fish Lake Valley and North Big Smoky projects in Nevada, US.
Under the rights issue, eligible shareholders will be offered one share at $0.036 per share, for every two existing shares held as at 8 August 2024. The offer price represents a 18.18% discount to the last price of $0.044.
For every two shares subscribed for, shareholders will also receive one free attaching unlisted option exercisable at $0.072 and a two year expiry date.
The rights issue is expected to close at 5pm AWST on 22 August 2024.
Western Australian mineral explorer Dreadnought Resources (ASX:DRE) is conducting a placement to raise $3.71 million for niobium and gold-focused drilling programs.
Under the placement, 194.44 million shares will be issued at $0.018 per share, representing a 10% discount to the last traded price and a 16.5% discount to the five day volume weighted average price (VWAP).
Dreadnought’s directors have subscribed for an additional 11.66 million shares, which will be issued subject to shareholder approval to be sought at an annual general meeting in November 2024.
Settlement of the new shares is expected to occur on 8 August 2024.
Dreadnought, which has a market capitalisation of $70.72 million, plans to use the funds towards niobium drilling at the Gifford Creek Carbonatite area, gold drilling at the Mangaroon Project, and general working capital.
Meanwhile, Gold Mountain (ASX:GMN) is conducting a placement to raise $2.7 million to advance exploration of high-priority targets in Brazil.
The funds will be used to advance exploration activities at the rare earths targets at Jequie, Lithium in Lithium Valley, and niobium near Araxa, alongside the tenement package in Papua New Guinea.
Gold Mountain, which has a market capitalisation of $13.22 million, will issue 729.7 million shares at $0.37 per share, representing a 3.5 discount to the five day VWAP of $0.383.
Canaccord Genuity will act as lead manager to the placement.
Write to Aaliyah Rogan at Mining.com.au
Images: KGL Resources
