17/12/2015 - 11:06

$24.6m in raisings for local firms

17/12/2015 - 11:06


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Local companies Triton Minerals, General Mining Corporation and Orinoco Gold have announced plans to raise a combined $24.6 million to fund ongoing work at their respective projects.

General Mining is earning a 50 per cent stake in Galaxy Resources' Mt Cattlin spodumene and tantalum project near Ravensthorpe.

Local companies Triton Minerals, General Mining Corporation and Orinoco Gold have announced plans to raise a combined $24.6 million to fund ongoing work at their respective projects.

In a statement today, General Mining announced it had placed 40.5 million shares at 18 cents each to raise about $7.3 million from investors, representing a 7.7 per cent discount to its last closing price.

The funds will be used to cover the company’s cost of earning into the $14.7 million Mt Cattlin spodumene and tantalum project near Ravensthorpe, which is expected to begin producing early next year.

General Mining is acquiring a 50 per cent stake in Mt Cattlin in a deal with Galaxy Resources, with an initial $7 million to be spent before the end of March next year.

“General Mining has sufficient cash to complete its initial equity and profit earn-in for the project by spending $7 million prior to March 31 and to cover anticipated plant optimisation capital, and working capital requirements prior to expected positive cash flow at the project,” the company said in a statement.

The placement was led by Canaccord Genuity, and included participation from clients of Hartleys.

It comes on the same day that Orinoco announced plans to raise up to $6 million by way of an entitlement offer and placement to fund further development of its Cascavel gold project in Brazil.

The company has announced a one-for-seven entitlement offer at 17 cents per share to raise $5 million, and has received commitments for a $1 million placement at the same issue price.

Orinoco also said it had received a commitment by an unnamed international resource finance and investment company for a $1.3 million investment at 17 cents per share through a share placement, on the condition that the company successfully raises at least $2.7 million from the announced raising.

The unnamed company is also contemplating a $10 million to $14 million investment in Orinoco through a share issue at the same price as the entitlement offer.

Orinoco managing director Mark Papendieck said the capital raising would enable the company to create more value for shareholders in a shorter timeframe.

“We now have the immense confidence in the Cascavel gold mine and therefore it makes complete commercial sense to take maximum advantage of it by expanding production quickly,” he said.

“These funds will allow us to accelerate the planned mine development and expand our haulage capacity, meaning we will increase planned production by more than 50 per cent in less than a year.”

Orinoco hopes to increase the planned start-up rate of 40,000 tonnes per annum of gold to over 60,000tpa by the December 2016 quarter.

Meanwhile, Triton Minerals has withdrawn an $11.3 million entitlement offer at 15 cents per share, but intends to undertake a fresh entitlement offer at a reduced 9 cents per share to raise the same amount.

In a statement, the graphite explorer said the new offer had been priced to reflect the current market conditions and allowed eligible shareholders to participate at a more attractive and lower price.

“Up to 125.5 million shares will be issued pursuant to the new offer if it is fully subscribed,” Triton said.

GMP Securities Australia has agreed to partially underwrite the offer, capped at $4 million.

Triton will use the funds raised to cover general working capital costs, earn-in costs and ongoing work at its Nicanda Hill and Balama North projects in Mozambique.

General Mining shares were unchanged at 19.5 cents each, Orinoco shares were flat at 20 cents, and Triton shares were 9.6 per cent lower to 8.4 cents each at 11am.


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