Africa-focused miners in $29m of raisings

Amani Gold has signed a memorandum of understanding with a little-known Chinese investment group to raise $25 million via a share issue to fund drilling at the Giro Gold project in the Congo.

The agreement is with Hong Kong company Luck Winner Investment, which was established by a Chinese investment group for the purpose of investing in the project.

Mount Hawthorn-based Amani will issue 500 million shares to Lucky at a price of 5 cents each, a premium to the company’s 4 cent per share closing price today (up 2.6 per cent).

Luck will also receive 250 million options with an exercise price of 7 cents.

Amani said that Luck would be a cornerstone investor for the company, which currently has a market capitalisation of $50 million.

Chairman Klaus Eckhof said the raising, subject to completion, would put the company in a strong position to take the project through to completion of feasibility studies.

“The raising introduces a cornerstone investor in the company at an attractive premium for existing shareholders,” Mr Eckhof said. 

“We look forward to welcoming Luck Winner as a long-term and supportive shareholder to the Amani register.”

Also today, CBD-based Celsius Resources announced it had raised $3.5 million for the Opuwo cobalt project in Namibia.

The capital was sourced from a number of investors, Celsius said, at an issue price of 3.7 cents per share, and the raising was jointly managed by Hartleys and Aesir Capital.

It will be used to fund drilling, metallurgical testing and working capital at the project.

Celsius managing director Brendan Borg said the cash would allow Celsius to speed up the advancement of the Opuwo project.

“The strong support received for the raising illustrates the high potential of the Project and the expected continued growing demand for new energy metals such as cobalt,” he said.

Shares in the company fell 9.1 per cent to be 4 cents each at the close of trading.