The money continues to flow into the junior exploration sector with several Australian Securities Exchange-listed companies undertaking capital raisings or locking in multi-million-dollar loans.
Newfield Resources (ASX:NWF) announced it has entered into an unsecured loan agreement for $10 million, with major shareholder and investment company Wonder Holdings.
The company has access to $10 million for an 18-month period from the first draw down, to fund general working capital and advance financing discussions with interested parties for the development of the Tonguma and Tongo diamond projects.
As part of the agreement, the loan has an interest rate of 7.5% per year calculated daily. Any outstanding interests are repayable with the principal amount at the end of the term.
The lender may elect to capitalise outstanding interest.
Meanwhile, Viking Mines (ASX:VKA) is conducting a placement to raise $2.39 million to fund and expand a reverse circulation drilling program at the First Hit Gold Project in Western Australia.
The program will be expanded to 20,000m of reverse circulation drilling, with the initial 5,000m of drilling being completed prior to the end of the December 2024 quarter.
Viking Mines, which has a market capitalisation of $11.68 million, aims to test open targets proximal to the First Hit Mine and conduct first-pass drilling at high-priority zones along a 25km stretch of the Zuleika Shear.
The program will resume in the first quarter of 2025 once the initial drilling results have been received and additional targets for follow-up are defined.
The company says the funds will boost its financial position to $5 million in cash reserves to fund exploration activities.
Under the placement, 265 million shares will be issued at $0.009 per share, representing an 18.2% discount to the last closing price of $0.011 per share.
Euroz Hartleys has been engaged to act as lead manager to the placement.
Lastly, Tivan (ASX:TVN) has accepted firm commitments to raise $1.155 million from retail and high net-worth investors via the placement of shortfall shares associated with a previously announced pro-rata entitlement offer.
The shortfall resulting from the entitlement offer was about 119.75 million shares and 59.88 million options.
Under the previously conducted offer, shareholders could subscribe for new shares at $0.05 each. Shareholders were also offered one free attaching unlisted option, exercisable at $0.12 within three years, for every two new shares issued.
Once the offer had closed, Tivan’s board accepted firm commitments from the placement of 23.1 million shares and 11.55 million options to raise $1.155 million.
Following the issue of shares under this tranche, the remaining shortfall totals 96.65 million shares and 48.33 million options. The offer is not open to the general public and investors will be invited by the company’s directors to participate.
Tivan says the shortfall offer will close on 2 December 2024.
Write to Aaliyah Rogan at Mining.com.au
Images: Viking Mines
