Both Subiaco-based Elkedra Diamonds NL and Perth-based oil and gas explorer Eureka Energy Ltd have commenced capital raisings through placements with institutional investors.
Elkedrahas entered into agreements with Perth-based institutional investors LinQ Capital Ltd and RFC Growth Fund II to raise $885,000 for the retirement of existing debts.
The company, which will place 1.1 million shares with LinQ and 587,084 with RFC, will, through this issue, finalise its remaining commitments arising from its takeover of Chapada Diamonds Ltd in June 2004.
Elkedra said in in an announcement that the issue would improve its financial position and put it on a proper standing with shareholders who had previously provided debt funding.
The company secured a $5 million standby finance facility with LinQ in May to act as a contingency against unforeseen problems in Elkedra's Chapada Diamond project in the initial months of ramping up production to full capacity.
The oil and gas explorer, and erstwhile diamond miner Eureka Energy Ltd aims to raise $1.3 million for working capital through a placement with institutional investors.
The company will place up to 6.2 million shares at an issue price of 22c with Perth-based private wealth management company Stripe Capital Ltd.
Eureka will also offer shareholders the opportunity to acquire an additional 10,000 ordinary shares in the company, at 22c each, to raise a further $2,200.