30/05/2011 - 09:59

Happy raisings for WA resources players

30/05/2011 - 09:59

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Western Australia-based resources firms Crescent Gold, Latin Resources, and Hot Chili have each announced strong interest and oversubscriptions to capital raisings collectively worth around $16 million.

Western Australia-based resources firms Crescent Gold, Latin Resources, and Hot Chili have each announced strong interest and oversubscriptions to capital raisings collectively worth around $16 million.

Laverton-focused miner Crescent announced today it had raised $8 million through a convertible notes issue.

The company said a further $844,000 was raised through a share placement at 0.05 cents per share.

The notes are convertible for the lower of 5 cents or 85 per cent of the five day volume weighted added price (VWAP) prior to conversion with one option for every two shares and includes a seven per cent coupon rate.

Crescent said the funds would be used for development programs in the Laverton region and general working capital.

"This funding demonstrates the strong support from investors for Crescent's gold production operations and gold development and exploration operations," managing director Mark Tory said.

"The company has rebounded from a difficult start to the year operationally, to be on track to exceed it's previously forecast quarterly equivalent gold production for the June 2011 quarter."

Mr Tory said Crescent was also progressing well in negotiations for a new financing facility to fund further capital development requirements of new open pits at Laverton.

At close of trade today Crescent's stock had gained 5.6 per cent, to trade at 5.6 cents.

Also, South America-focused Latin Resources announced today that global investment house RMB Resources would become a substantial shareholder, following completion of a $4 million share placement.

RMB will invest $2 million in the placement, which was priced at $0.26 per share.

The remainder of the placement will be to sophisticated and high-net worth investors, including Latin's largest shareholder, Cape Lambert Resources.

The Perth-based mineral sands and iron ore explorer also launched a share purchase plan to its existing shareholders, to raise a maximum of $7.68 million, also at $0.26 per share.

Latin said the funds would be used to advance exploration at its two major Peru projects, the Guadalupito iron and mineral sands deposit and Ilo iron ore tenements.

Latin Resources' managing director Chris Gale was very pleased to complete the capital raising and to welcome RMB Resources as a substantial shareholder.

"We are delighted to welcome our newest substantial shareholder RMB, an institutional investor with extensive experience and success investing in global resources assets and companies," Mr Gale said.

"RMB have particular expertise investing in resource assets and are very excited about the future of Latin's projects.

"RMB's investment represents a very strong vote of confidence in our company and major projects and with their support Latin will now accelerate our already aggressive exploration plans with the goal of delineating an inferred JORC resource later this year followed by a scoping study.

"We are also pleased to offer our loyal shareholders the opportunity to participate in a share placement plan at the same price as the placement in recognition of their strong support since our IPO last year."

When the ASX closed today shares in Latin had not been traded since resuming quotation on the market this morning after it entered a halt on Friday at $0.30.

Meanwhile, Chile-focused diversified explorer Hot Chili announced today it completed a share placement to raise $3.65 million at $0.60 per share.

The placement was made to sophisticated and experienced investor clients of DJ Carmichael, which acted as lead manager for the raising.

Hot Chili said the funds would be used for additional drilling to deliver a maiden resource at its flagship Productora multi-commodity copper project in Chile.

"This will represent a significant milestone in the company's development since listing on the Australian Securities Exchange in May 2010," Hot Chili said in a statement to the ASX.

"The company's first resource will provide a strong platform for future growth and establish Hot Chili's presence within the ranks of emerging large-scale multi-commodity copper developments."

At close of trade today Hot Chili's stock was up half a cent at 59.5 cents.

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