While many were taking a punt on the horses yesterday (5 November), a large contingent of miners were heading to market to top up their bank balances.
Gold miner St Barbara (ASX:SBM) is rattling the tin for $100 million to accelerate development activities at the Simberi Sulphides Expansion Project in Papua New Guinea.
Under the two-tranche placement, which is fully underwritten, 263 million shares will be issued at $0.38 per new share — representing a 17.4% discount to the closing price on 31 October 2024.
Petra Capital is acting as the sole underwriter, sole bookrunner, and sole lead manager to the placement.
Tranche one will comprise the issue of 87.28 million shares to raise $33 million, while tranche two comprises 175.87 million shares to raise $67 million.
St Barbara, which has a market capitalisation of $376.43 million, says the funds will be applied to key areas to advance the project, with a view to expedite first production from Simberi Sulphides by up to five months.
The key project components include the procurement and construction of the new larger ball mill circuit, construction of the expanded wharf for concentrate vessels, and construction of the new run-of-mine pad and sizer installation.
In conjunction, St Barbara is conducting a share purchase plan (SPP) to eligible shareholders, who can apply for up to $30,000 worth of new shares at the same issue price as the placement.
The company aims to raise $10 million under the SPP, which will open on 15 November 2024 and close at 5pm AEDT on 4 December 2024.
Funds from the SPP will also go towards accelerating the development of the Simberi Sulphides Expansion Project.
Wia Gold (ASX:WIA), meanwhile, is chasing up to $30 million via the issue of 200 million shares at $0.15 each.
The issue price represents a 3.2% discount to the closing price of shares on 31 October and 1.1% discount to the 15-day volume weighted average price.
Petra Capital acted as sole lead manager and bookrunner to the placement, while Tamesis Partners and Argonaut Securities acted as co-lead managers.
Directors are contributing $1.1 million to the placement, subject to shareholder approval.
Wia Gold, which has a market capitalisation of $179.44 million, says the funds will be used to expedite ongoing activities in Namibia, increase the mineral resource estimate and initiate Scoping Study activities.
Funds will also support the company to advance the project towards the completion of a Definitive Feasibility Study, and undertake drilling in Côte d’Ivoire.
Xanadu Mines (ASX:XAM) has received firm commitments for a placement to raise $5.5 million for a wide range of activities at the Red Mountain Copper-Gold and Sant Tolgoi Nickel-Copper projects.
The funds will also be used for new project acquisitions and exploration work, funding for the first quarter of 2025 of the Khuiten joint venture prior to starting a Feasibility Study, and general working capital.
Under the placement, 100 million shares priced at $0.055 per share will be issued to eligible professional and sophisticated investors. The issue price represents a 14.1% discount to the closing price of $0.064 per share on 31 October.
Xanadu, which has a market capitalisation of $109.82 million, is in discussions with potential strategic parties for subsequent participation on similar terms, subject to formal documentation and approvals.
The company has also entered a consultation period with Zijin Mining after delivering the Prefeasibility Study for the Kharmagtai Project.
As part of those discussions, Zijin will be given the opportunity to participate in the placement on a pro-rata basis to maintain its 19.4% shareholding in Xanadu via its subsidiary Jinping Mining. Zijin’s participation is subject to formal documentation, securing approvals, and completing the placement to other participants.
Ord Minnett and Bell Potter Securities will act as joint lead managers to the placement, while MST Financial and PAC Partners will act as co-managers.
Lastly, Reward Minerals (ASX:RWD) has raised $1.652 million in the first tranche of a two-tranche placement, issuing 27.53 million shares at $0.06 each.
Participants also received one free attaching option, exercisable at $0.12 before 5 November 2026.
The final portion from tranche one, comprising 830,004 shares to raise a further $49,800, is expected to be issued on or about 7 November 2024.
Reward Minerals says the second tranche to raise $600,000, comprising 10 million shares and 5 million free attaching options, is subject to shareholder approval.
Funds will be used to complete a new engineering Scoping Study for a sulphate of potash (SOP) project in Western Australia, using the company’s processing technologies and Beyondie Potash Plant components to be acquired by Reward.
The funds will also be used to continue engagement with solar salt, fertiliser, and seawater desalination companies worldwide to discuss the applications of the company’s technology and proposed SOP developments for possible joint venture participation and investment.
No lead managers were appointed to manage the placement.
Write to Aaliyah Rogan at Mining.com.au
Images: St Barbara
