The Capital Crunch: Santana, Geopacific, tap investors for equity

ASX-listed explorers continued to tap the market and investors for capital last week, with Santana Minerals (ASX:SMI) conducting a private placement to raise $31.2 million. 

Santana, which has a market capitalisation of $226.49 million, has received firm commitments to issue 27.1 million shares to institutional, professional, and sophisticated investors, at $1.15 per share.

The company also proposes to conduct a share purchase plan to raise up to $4 million at the same issue price. 

The funds will be used to advance its Bendigo Ophir Gold Project, with resource definition and extensional drilling, as well as Prefeasibility and Definitive Feasibility studies costs. 

The issue price represents a 9.4% discount to the close of trading price on 22 April 2024. 

Bell Potter Securities and Euroz Hartleys acted as joint lead managers to the placement. 

Image Resources (ASX:IMA) has entered into an At-the-Market Subscription Deed (ATM) with Acuity Capital Investment Management as trustee for the Acuity Capital Holdings Trust. 

The ATM provides Image with up to $12.5 million of standby equity capital up until 31 January 2029. 

As security for the ATM, the $98.25 million market capitalisation company has agreed to issue 55 million shares to Acuity Capital for no cash consideration. 

Image says there are no obligations for it to use the ATM and it may terminate the subscription deed at any time, with no cost or penalty. 

Meanwhile, Gold-focused explorer Geopacific Resources (ASX:GPR) has received firm commitment from new strategic investor Jingtao Chi to contribute $5 million via a two-tranche share placement at $0.021 per share. 

The placement will see Chi emerge with a 19.99% shareholding in Geopacific.

Geopacific, which has a market capitalisation of $22.18 million, also received commitment from an existing shareholder Deutsche Balaton to apply monies owing under certain bearer bonds, totalling $3 million. 

Deutsche Balaton will subscribe for shares in the company at the same price as the placement to maintain its current interest of 37.2% of the shares in Geopacific. 

Funds will be used to complete an updated Feasibility Study and grow the Woodlark Gold Project’s 1.56 million ounce resource. 

The funds will also be applied towards preparations for drilling on high priority target areas with strong potential to host material economic mineralisation, as well as general working capital. 

An extraordinary general meeting of the company will be held on or around 4 June 2024 to approve tranche two of the placement, as well as bond conversions. 

And Western Australia explorer and developer Rox Resources (ASX:RXL) is conducting a capital raising of up to $7.62 million by way of a pro-rata non-renounceable entitlement offer on the basis of one new share for every eight existing shares held by eligible shareholders. 

The proceeds will allow Rox to progress the next stage of exploration and development of its flagship Youanmi Gold Project, including completing an ongoing Prefeasibility Study (PFS) due in June 2024, as well as advancing detailed geo-metallurgical studies ahead of future feasibility studies. 

The offer price is $0.165 per share, representing a 24% discount to the 7-day volume weighted average price. 

Under the offer, eligible shareholders will also receive one free attaching new option for every two new shares issued, exercisable at $0.25 per option with a 18-month expiration date. 

Write to Aaliyah Rogan at Mining.com.au   

Images: Santana Minerals & Geopacific 
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Written By Aaliyah Rogan
Relocated from the East Coast in New Zealand to Queensland Australia, Aaliyah is a fervent journalist who has a passion for storytelling. When Aaliyah isn’t writing stories, she is either spending time with friends and family or down at the beach.