Gold miner Apex Minerals has fallen way short in its attempts to raise nearly $9 million to repay its debts and boost working capital, announcing this afternoon that shareholders had applied for just $397,000 worth of shares.
A large shortfall was expected, after Apex announced on Friday that underwriter Azure Capital had terminated its agreement after failing to secure sufficient interest.
Apex had been seeking to secure up to $8.86 million and a minimum of $6 million through a non-renounceable rights issue to existing shareholders, priced at 8 cents per share.
Azure had agreed to underwrite $6 million of the placement, but Apex said on Friday it had not met all of the conditions for the underwriting, and as such, Azure backed out of the arrangement.
Despite the low take-up, the company remained positive.
“A number of the company’s largest institutional and retail shareholders have expressed a willingness to participate in the placement of the shortfall shares and the company is confident of making an announcement regarding the successful completion of shortfall shares over the course of the coming week,” Apex said in a statement today.
Azure Capital is assisting Apex with the placement of the shortfall shares.
In good news for Apex today, the company reported that gold sales in October totalled 4,325 ounces, a record under the new management appointed in April.
The company also said cost-savings measures and changes to its mining fleet at its underground operations have resulted in savings of more than $300,000 per month.
At 12:20PM, WST, Apex shares were steady at 7.6 cents.