Integra Mining will raise almost $14 million through a share placement, with proceeds to be applied to feasibility studies and exploration at its Randalls and Aldiss-Randalls projects.
Integra Mining will raise almost $14 million through a share placement, with proceeds to be applied to feasibility studies and exploration at its Randalls and Aldiss-Randalls projects.
The company will issue 70 million shares at 19.5 cents each in two tranches to institutional and sophisticated investor clients of Euroz Securities and Blackwood Capital.
On completion of the placement, Integra will have raised $13.65 million.
Shares in Integra last traded at 21.5c at 12:51 AEDT.
Tranche one of 55 million shares will take place within the company's 15 per cent raising capacity, while tranche two will need shareholder approval, anticipated to be obtained at a meeting next month.
"The capital raised will allow us to advance the ongoing exploration on the Company's properties and complete the Feasibility Study for the Aldiss-Randalls gold project on our way to establishing Integra as a domestic gold producing company with a dominant regional position in the Eastern Goldfields," managing director Chris Cairns said.
Meantime, Integra will also undertake a share purchase plan for existing shareholders, with each share to be priced at 19.5c.
Shareholders will be entitled to apply for up to $5000 of new Integra shares.
The announcement is below:
The Board of Integra Mining Limited ("Integra") is pleased to announce the placement of 70 million shares at 19.5 cents each to raise gross proceeds of approximately $13.65 million. The placement was managed by Euroz Securities Limited and the shares placed to institutional and sophisticated investor clients of Euroz and Blackwood Capital Limited.
The placement will be made in two tranches. Tranche one will comprise 55 million shares utilising the Company's 15% capacity under the ASX Listing Rules. Tranche two will comprise 15 million shares, subject to shareholder approval at an Extraordinary General Meeting (EGM) expected to be held on 31 March 2009. The Company will shortly lodge and dispatch to shareholders a notice for the EGM.
Funds raised from this issue will be used for:
Randalls Project feasibility studies and associated programmes
- Data interpretation, open pit optimisations and open pit designs,
- Process facility final designs,
- Process water exploration,
- Infrastructure sterilisation drilling
- Completion of other critical elements of a feasibility study;
Aldiss-Randalls Project exploration including:
- Reconnaissance exploration
- Mineral Resource definition drilling of gold mineralisation currently not included in Integra's Mineral Resources statement, and,
- Mineral Resource upgrade drilling;
Working Capital.
Commenting on the placement, Integra's Managing Director, Chris Cairns said "We are very pleased with the support we have received for this placement from both new and existing shareholders. The capital raised will allow us to advance the ongoing exploration on the Company's properties and complete the Feasibility Study for the Aldiss-Randalls gold project on our way to establishing Integra as a domestic gold producing company with a dominant regional position in the Eastern Goldfields".
Share Purchase Plan
In parallel with the placement the Directors are pleased to announce a Share Purchase Plan ("SPP"). The SPP will be offered to all of the Company's shareholders registered at 5:00pm WDST on 17 February 2009 ("Record Date") with a registered address in either Australia or New Zealand ("Eligible Shareholders"). Eligible Shareholders will each be entitled to apply for up to $5,000 of new fully paid ordinary shares in the Company ("Shares"). The subscription price for each Share is 19.5 cents, being the same as the price of the placement.
Proceeds of the SPP will be used in conjunction with the share placement described above to fund the Company's on-going operational activities.
Commenting on the SPP, Chris Cairns said: "The SPP allows Integra to reward our smaller shareholders by providing them with the opportunity to contribute additional capital to the Company at the same price as institutional investors who participated in the placement. The Company gratefully acknowledges the loyal support of our smaller shareholders, particularly during recent financial market turmoil."
