In order to fund exploration work at the Kharmagtai copper/gold project, in Mongolia, copper explorer Xanadu Mines will raise A$10.2-million in a share placement. The company has received firm commitments for the placement of 163.8-million shares, at a price of 6.2c each to professional and sophisticated investors under its existing placement capacity.
The issue price represents a 15.1% discount to Xanadu’s last closing price, and a 13.2% discount to its five-day volume weighted average share price. The placement is scheduled to settle on April 30.
“We are pleased with the strong support received from both existing shareholders and new institutional investors,” said Xanadu nonexecutive chairperson Colin Moorhead.
“This placement continues to strengthen our share register and fully funds Xanadu to execute its exploration strategy at Kharmagtai. Investors can look forward to a period of strong news flow as we embark on an aggressive drilling programme to define the higher-grade, gold-rich bornite zones at depth and unlock the next stage of development in this globally significant copper/gold project.”
Xanadu said that proceeds from the placement, along with the company’s existing cash resource, would be applied towards the Phase 2 exploration programme at Kharmagtai, targeting higher-grade, bornite-rich zones at depth, as well as for general working capital purposes.