19/09/2017 - 14:55

Juniors in $26m of deals

19/09/2017 - 14:55

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Six local resources companies have announced capital raisings of around $26 million for projects including in lithium and rare earths, with one of the businesses, Okapi Resources, planning to join the ASX bourse.

Juniors in $26m of deals
Five of the six companies are already listed on the ASX. Photo: Attila Csaszar

Six local resources companies have announced capital raisings of around $26 million for projects including in lithium and rare earths, with one of the businesses, Okapi Resources, planning to join the ASX bourse.

West Perth-based Okapi is focused on the Crackerjack gold project in the Kimberley and the Mambasa gold project in the Democratic Republic of Congo.

The company is chaired by Klaus Eckhoff, with Nigel Ferguson as managing director, both of whom are also on the board of ASX-listed AVZ Minerals.

Okapi raised $5 million as part of its initial public offering, issuing $25 million shares at 20 cents each, led by Melbourne firm Peak Asset Management.

The biggest move in the group was by Artemis Resources, which issued 60 million shares at 20 cents each to raise $12 million.

Clients of Sprott Capital Partners subscribed for $4 million of shares, while Global Investment Strategy UK chipped in $3 million.

Artemis plans to spend the money to pursue gold exploration at the Purdy’s Reward joint venture in the Pilbara, where the company is working in a joint venture with Novo.

Under that agreement, Artemis will need to spend around $5 million for an equal share in the venture.

CBD-based  Valor Resources raised $3.1 million at 2.5 cents per share in an oversubscribed placement to institutional and sophisticated investors, with the money to go towards Peruvian copper project Berenguela.

CPS Capital Group acted as lead manager.

Valor executive chairman Mark Sumner said there had been strong support for the placement.

“It speaks to the quality and prospects for the Berenguela project,” he said.

“Valor is in a very strong position to advance the work program and take Berenguela to the next level.

“We will continue to deliver results for the current program as they become available, as well as proceed with necessary steps to prepare for the next phase of exploration and development.”

West Perth-based Peak Resources will raise $2.8 million at 4 cents per share in an entitlement issue.

The money will be going towards a permitting and licensing application for the Ngualla rare earths project in Tanzania, covering operating expenses and debt retirement.

Breaker Resources, also based in West Perth, has raised $1.4 million led by Patersons Securities, at an issue price of 70 cents per share.

It will be used to progress drilling at the Lake Roe gold project, near Kalgoorlie.

Finally, Triton Minerals raised $1.2 million via a strategic placement to cornerstone investor Shadong Tianye mining Co.

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