16/03/2018 - 11:30

Junior explorers raise $21m

16/03/2018 - 11:30

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Three local junior explorers have raised more than $21 million, with Draig Resources and Triton Minerals boosting their coffers while the Charlie Bass-led Eagle Mountain Mining has commenced trading on the ASX after raising $8 million via an initial public offering.

Junior explorers raise $21m
Rick Crabb is chairman of Eagle Mountain. Photo: Attila Csaszar

Three local junior explorers have raised more than $21 million, with Draig Resources and Triton Minerals boosting their coffers while the Charlie Bass-led Eagle Mountain Mining has commenced trading on the ASX after raising $8 million via an initial public offering.

Draig said it had issued 40 million shares at 20 cents each and had received strong support from institutional and sophisticated investors.

Canaccord Genuity acted as lead manager to the placement.

Executive director Steve Parsons said the proceeds would be used for ongoing exploration costs and general working capital.

“Our flagship Bellevue gold project is now well positioned to complete all medium-term exploration activities and for us to release a resource estimate in the third quarter of 2018,” he said.

Shares in Draig were up 4.7 per cent at 22 cents each at 130pm AEDT.

Triton Minerals has announced a $5.2 million capital raising, comprising a $1 million share placement and a fully underwritten entitlement offer for $4.2 million.

Funds from the raising will be across the company’s portfolio of graphite and vanadium projects in Mozambique.

The company has received firm commitments for the $1 million placement and will issue 12.5 million shares at 8 cents each.

The one-for-15 pro rata non-renounceable entitlement offer will be completed at the same price with Somers & Partners fully underwriting the issue.

Managing director Peter Canterbury said the raising improved the company’s financial position after the recent acquisition of graphite projects in Mozambique.

“The capital raising bolsters the company’s balance sheet following the recent Grafex acquisition and restructure of the joint venture, and provides working capital ahead of the anticipated ramp-up of development activities at Ancuabe and Nicanda Hill,” he said

“Part of the capital raising proceeds will be allocated to commercial activity at Nicanda Hill, one of the world’s largest graphite and vanadium deposits.”

Shares in Triton were off 7.7 per cent at 8.3 cents each at 230pm AEDT.

Eagle Mountain got off to a strong start on the ASX today in its first day of trading after raising $8 million at 20 cents per share.

The company's shares were up 65 per cent at 33 cents each at 3.30pm AEDT.

Peleton Capital acted as lead manager to the offer. 

Led by experienced managing director Charlie Bass, Eagle Mountain owns a series of gold and copper tenements in Arizona in the US.

The board also includes chairman Rick Crabb, who serves on the boards of Paladin Energy and Thundelarra, and Roger Port, who is a former partner at PwC and is currently a director with the Harry Perkins Institute of Medical Research and Guildford Grammar.

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