11/06/2020 - 15:15

Explorers to raise $42m

11/06/2020 - 15:15

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Piedmont Lithium has launched a $29 million capital raising to advance its namesake project in the US, while Arafura Resources and Vimy Resources are raising funds to develop rare earth and uranium projects in Western Australia and the Northern Territory.

Explorers to raise $42m
Vimy Resources is raising funds to advance its uranium projects in WA and the NT. Photo: Vimy

Piedmont Lithium has launched a $29 million capital raising to advance its namesake project in the US, while Arafura Resources and Vimy Resources are raising funds to develop rare earth and uranium projects in Western Australia and the Northern Territory.

Perth-based Piedmont said it would use the proceeds raised to complete a definitive feasibility study, as well as testwork, permitting, and ongoing land consolidation.

The company will issue 1.8 million of its American Depositary Shares to US investors – representing 100 of its ordinary shares – at an issue price of $US6.30 ($A9) per ADS to raise $US11.3 million ($A16.2 million).

New York-based ThinkEquity and Loop Capital Markets are acting as joint bookrunners to the offer, and Canaccord Genuity and Roth Capital Partners acting as financial advisers.

Due to strong investor demand, Piedmont said, the underwriters would purchase a further 265,000 ADSs from the company to cover over-allotments, raising additional proceeds of $US1.7 million ($A2.4 million).

Piedmont said it had also received commitments to raise $10.8 million from existing non-US investors via the issue of 120 million shares at 9 cents per share.

Canaccord and Shaw and Partners are acting as joint-lead managers, with Piedmont directors intending to subscribe for around 3.6 million of the total shares issued under the private placement.

Piedmont shares closed down nearly 27 per cent to trade at 9.5 cents.

Arafura Resources also announced today it had received commitments to raise $7 million from a share placement, via the issue of nearly 113 million shares, priced at 6.2 cents each.

Canaccord is acting as sole lead manager and bookrunner to the placement.

Perth-based Arafura said the funds raised would go towards completion of early engineering works at its Nolans rare earth project in the NT.

Managing director Gavin Lockyer said the project was the only new neodymium-praseodymium oxide project in Australia with all environmental approvals granted.

Shares in Arafura closed down 16.7 per cent to trade at 6.5 cents.

Meanwhile, uranium explorer Vimy Resources is raising $5.5 million from a share placement to advance its Mulga Rock project in WA and Alligator River project in the NT.

Vimy will use the funds to update a definitive feasibility study for the Mulga Rock project, completed in early 2018, and undertake front-end engineering and design works at the site.

The proceeds will also go towards drill programs at the Southern Flank and Such Wow prospects at Alligator River.

Managing director Mike Young said Vimy was in a unique position to capitalise on the supply shortage of uranium, due to COVID-19, by transitioning its Mulga Rock project into development.

The West Perth-based company will issue 152.8 million shares, priced at 3.6 cents each, representing nearly 25 per cent of its current shares on issue.

KG Capital Partners is acting as lead manager and bookrunner to the placement.

Shares in Vimy closed down 7.5 per cent to trade at 3.7 cents.

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