Azumah RC Drilling at its Wa Lawra project Photo: Azumah

Junior miners raise $30m

Wednesday, 20 July, 2016 - 14:23

Local junior miners Prospect Resources, Azumah Resources and Sipa Resources, and Melbourne-based Red River Resources, have today announced a collective $29.8 million worth of capital raisings. 

Prospect received commitments for $14 million to be raised via the issue of 280 million shares at 5 cents each to Chinese investors.

The proceeds of the raising will be used to fund the development of Prospect’s lithium and gold projects in Zimbabwe, as well as enable the Subiaco-based miner to make additional strategic acquisitions within the lithium, graphite and cobalt sectors and supplement general working capital.

Ghana-focused gold explorer and developer Azumah advised its working capital had been boosted by a total of $4.65 million.

Patersons Securities Limited was appointed lead manager of Azumah’s oversubscribed share purchase plan, which raised $3.15 million and share placements that raised an additional $1.5 million.

Azumah managing director Stephen Stone said there was strong support shown by existing and new investors.

“It provides the company with a healthy working capital position and the ability to accelerate exploration campaigns at several compelling targets within its Wa Gold Project, Ghana,” he said.

Sipa Resources announced a capital raising of up to $2.264 million that it will use to support future drilling programs at its Western Australian copper-gold Paterson North project and Akelikongo nickel sulphide discovery in Uganda. 

A private placement of up to 13.2 million shares at 2 cents per share as well as a Share Purchase Plan of 100 million shares for eligible shareholders at the same price will comprise the capital raising. 

 Zinc-focused Red River announced a heavily oversubscribed placement of $8.9 million through a placement of 74.6 million shares at 12 cents per share.  

Red River appointed Perth firm Hartleys as lead broker to the placement, which is being completed in two tranches, with 55.3 million shares issued in the first phase and up to a further 19.3 million shares to follow.

Red River managing director Mel Palancian said funds would go toward exploration at the Far West zinc resource and work on the restart of the Thalanga mill in central Queensland.

“This placement will enable Red River to undertake exploration, resource definition and study work to drive further value at Thalanga,” he said.

“The infill drilling program at Far West will advance the Thalanga zinc project towards restart and we will also continue our high-impact regional exploration program, testing a number of targets with good potential for a new discovery.”

At the time of writing, Azumah shares were down 2 per cent, trading at 4.8 cents, Red River stock had lifted 16 per cent to trade at 14.5 cents, and Prospect was in a trading halt.