02/10/2012 - 14:49

Junior miners to raise $7.5 m for exploration

02/10/2012 - 14:49


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Perth-based mining juniors GBM Resources, Invictus Gold and Hannans Reward have announced capital raising plans today, collectively worth nearly $7.5 million.

GBM Resources announced a share placement agreement with a Singaporean consortium led by Lion Resource Development this morning, to raise $3.1 million.

Lion will take a 19.9 per cent stake in GBM through a two-tranche placement, with the shares priced at 5 cents each.

GBM said the funds would allow it to progress development at its Milo rare earths project in Queensland and provide additional working capital.

At Invictus, the gold junior announced a two-for-one renounceable rights issue, priced at 4 cents per share, to raise $2.88 million.

Invictus said major shareholder Impact Minerals had agreed to take up $1.28 million worth of shares in the offer, and underwrite the balance of the offer.

Funds will be used for further exploration at the Drummond Basin projects in Queensland and the Himmetdede South project in Turkey.

Finally, Hannans Reward launched a share purchase plan today, to raise $1.5 million.

The purchase plan will be priced at a 15 per cent discount to the 5-day volume weighted average price of Hannans stocks before the offer’s closing date on October 26.

Hannans said the funds would be used to continue drilling programs and complete a preliminary scoping study at the Rakkurijoki iron project in Sweden and continue exploration for copper and gold in Sweden, Norway and Australia.

At close of trade today, GBM shares were down 8 per cent, trading at 4.1 cents, Hannans’ stock dropped 10 per cent to 2.6 cents and Invictus securities were steady at 5.2 cents. 


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