22/09/2015 - 13:29

Explorers seek to raise $10m

22/09/2015 - 13:29

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Local explorers Encounter Resources, Horseshoe Metals and RNI have announced plans to raise a combined $9.8 million to fund ongoing work at their respective projects.

Explorers seek to raise $10m
RNI chairman Miles Kennedy.

Local explorers Encounter Resources, Horseshoe Metals and RNI have announced plans to raise a combined $9.8 million to fund ongoing work at their respective projects.

Encounter said it had received firm commitments from professional and sophisticated investors for a placement of 10.8 million shares at 14 cents each to raise $1.5 million, and would provide existing shareholders with an opportunity to participate in a $1.4 million share purchase plan, at the same price as the placement.

Proceeds from the placement will be used to continue exploration at its Yeneena copper-zinc project in the Paterson province of Western Australia.

A fund managed by the Sprott Group of Companies has committed to the placement.

“This placement provides further endorsement, by one of the world’s most successful investment funds, of the large scale copper and zinc potential established at Yeneena,” Encounter managing director Will Robinson said.

“The combination of funding through earn-in agreements and new injections of capital means that Encounter is well placed to advance the undercover mineral discoveries at Yeneena and to generate new opportunities for our shareholders.”

Horseshoe Metals plans to raise up to $500,000 through the placement of 20 million shares at 2.5 cents each, and up to $948,000 through a one-for-five non-renounceable rights issue to existing shareholders at the same price.

The funds raised will be used for ongoing exploration and development at Horseshoe’s Lights copper-gold project in the Gascoyne region, including a scoping study.

Meanwhile, Miles Kennedy-chaired RNI is also looking to raise funds by way of a non-renounceable rights issue.

It will offer eligible shareholders one new share at 1.5 cents each for every two shares already held, capped at about $5.5 million.

Of that amount, $5 million has been underwritten by GMP Securities.

The proceeds of the raising will be used to repay part of a $23 million debt facility with Taurus Resources, and for working capital.

RNI is exploring for gold at its Grosvenor and Peak Hill projects in the Bryah Basin.

Encounter shares were unchanged at 14 cents, Horseshoe shares dropped 14.8 per cent to 2.3 cents, and RNI shares lost 6.6 per cent to 1.4 cents, at 1:30pm.

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