On the back of Friday’s capital raising news, the first ‘Capital Crunch’ for the week includes Sunstone Metals (ASX:STM) conducting a $6.3 million capital raising to continue making more gold-copper-silver discoveries in Ecuador and Australia.
The capital raising comprises a $2 million placement at $0.011 per share to institutional investors, as well as a one-for-nine non-renounceable pro-rata rights issue to raise up to $4.3 million.
Morgans Corporate and Canaccord Genuity acted as joint lead managers to the placement.
Proceeds will be used to restart drilling at the Limon gold-silver epithermal discovery within Sunstone’s Bramaderos concession and further ongoing exploration work at the El Palmar and Verdo Chico projects.
Sunstone’s board of directors intend to participate in the placement for $150,000, subject to shareholder approval.
Western Australia-based explorer Boab Metals (ASX:BML) is conducting a $5 million capital raising to progress its Sorby Hill Project, comprising a $1.7 million placement and a $3.3 million non-renounceable entitlement offer.
Funds will be applied towards progressing Sorby Hills towards a financial investment decision, including completing optimisation workstreams, technical and legal due diligence workstreams, and ramp up of activities.
Boab says funds will also be used for early site works and a drilling campaign at Sorby Hills and the Manbarrum Project.
The issue price is $0.10 per share, representing a 20% discount to the last traded price of $0.125 and an 18.2% discount to the five-day volume weighted average price (VWAP).
Morgans Corporate and Unified Capital Partners were lead managers, bookrunners, and underwriters to the placement.
Rare earth-focused explorer Lanthanein Resources (ASX:LNR) has also received firm commitments from investors to raise $2.2 million via a placement.
The placement comprises 488 million shares at an issue price of $0.45 per share.
Funds will be used for exploration work, including drilling at the Lady Grey Lithium-Gold-Copper-Nickel Project in Western Australia.
Inyati Capital acted as manager to the placement and, subject to shareholder approval, will receive about 73.3 million options exercisable at $0.68 with a three-year expiry date.
Provaris Energy (ASX:PV1) is conducting a partially underwritten $2 million share purchase plan (SPP), in which eligible shareholders can apply for up to $30,000 in Provaris shares at $0.04 per share.
A group of existing institutional and sophisticated shareholders have collectively underwritten $1 million of the SPP.
Funds raised will be applied to ongoing hydrogen development activities related to both technical and commercial activities in Europe, alongside general working capital purposes.
The SPP issue price represents a 16% discount to the closing price on 30 April 2024 and a 12% discount to the five-day VWAP ending on the same date.
Provaris also secured a two-year $3 million standby finance facility with Macquarie Bank, which will be issued in multiple tranches.
The first tranche comprises $500,000 and the following tranches will be atProvaris’ discretion.
The facility will support Provaris’ development program in 2024-25, including assisting with development costs for potential hydrogen production and export sites in the Nordic region, and future working capital requirements for the production and sale of small-scale tanks.
Write to Aaliyah Rogan at Mining.com.au
Images: Sunstone Metals
