The Australian Securities Exchange (ASX) saw significant movement across the platform yesterday (4 September), with a range of mining companies raising capital.
Lotus Resources (ASX:LOT) has completed a bookbuild for its $65 million placement, as a part of its plans to advance the recently restarted Kayelekera Uranium Project in Malawi and development activities at its Letlhakane Project in Botswana.
The company will issue 1.2 million shares at a price of $0.19 per share, representing a 15.6% discount to the last closing share price and a 1.6% discount to the 10-day volume weighted average price (VWAP).
Barrenjoey Markets, Jett Capital Advisors, and Canaccord Genuity acted as joint lead managers for this placement, with Argonaut Securities and Petra Capital acting as co-managers.
Lotus expects to settle shares on 10 September.
Directors will subscribe to raise around $230,000 following shareholder approval at an annual general meeting on or around 18 November.
Proceeds will be used to push the Letlhakane Project towards becoming a multi-asset uranium producer, as well as providing working capital for the Kayelekera Project.
Core Lithium (ASX:CXO) has opened its share purchase plan today (4 September) to raise up to $10 million to fund development activities at BP33 Mine within its wholly owned Finniss Lithium Project in the Northern Territory.
The company will issue shares at an offer price of $0.105 per share, offering the same conditions as its recently completed placement that raised $50 million.
Eligible shareholders will be eligible to apply from $2,500 up to $30,000 worth of shares in this purchase plan, which will rank equally to existing shares.
After opening at 9am AEST, Core expects to close the plan on 24 September at 5pm.
Funding will be used to streamline box cut and decline works necessary to the BP33 Underground Mine’s readiness, along with other operational preparations and long-lead items.
Preparations for the mine is a part of the company’s plans to bring the Finniss Project towards a final investment decision, while simultaneously strengthening Core’s balance sheet and providing flexibility for future funding opportunities.
Core Lithium is an explorer dedicated to sourcing critical minerals ethically across its Australian assets, contributing to global decarbonisation efforts.
Peregrine Gold (ASX:PGD) has returned firm commitments to raise $3 million for an upcoming placement to fund exploration at the Newman and Mallina projects in north-west Western Australia.
The company will issue 13.64 million shares at an issue price of $0.22 per share, along with 6.82 million options exercisable at $0.33 each on or before the date that is three years from the date of issue.
The issue price represents a 20% discount to the last trading price on 1 September at $0.28, as well as a 22.8% discount to the 15-day VWAP.
Discovery Capital Partners acted as the lead manager for this placement, which is expected to settle on 10 September.
Yandal Investments cornerstoned this placement as the largest shareholder in Peregrine.
Other cornerstone investors include Lion Selection Group, which pledged $0.5 million investment
Lion Managing Director Hedley Widdup says the group has built a “robust and successful” portfolio focused on gold assets, as well as a variety of non-gold projects.
“Peregrine’s channel iron prospects are exceptionally well located and offer attractive scale if the large surface footprints can be proven through drilling,” Widdup says.
By funding a pro-forma cash position of more than $5 million, proceeds raised in this placement will be deployed to a maiden drilling program at the Mallina Project and reverse circulation drill testing of gold and iron targets at Newman, as well as the ongoing target generation.
Similarly, Verity Resources (ASX:VRL) has returned $3 million from a two-tranche placement to accelerate resource upgrade and expansion drilling programs at the Monument Gold Project in the Laverton Gold District of Western Australia.
The company will issue 125 million shares at an issue price of $0.024 per share, representing a 14.3% discount to the last closing price of $0.028 on 1 September and 4.4% discount to the 15-day VWAP.
Holders will be eligible to acquire one option per every three shares subscribed, holding an exercise price of $0.048 per option to expire two years from issue.
Evolution Capital acted as the lead manager for this placement, in which directors pledged to subscribe for $250,000, still subject to shareholder approval.
Funds will be used to commence phase two drilling at the Korong, Waihi, and other targets at the project, along with metallurgical studies and assessment of ‘value-accretive’ opportunities.
Write to Maddison Elliott at Mining.com.au
Images: Lotus Resources
