West Perth-based Northern Minerals and ASX-listed Golden Rim Resources have announced share placements of $3 million and $2.25 million, respectively.
Northern Minerals said it had entered into another subscription agreement with businessman Liu Xiaohua for the placement of 60 million shares at an issue price of 5 cents each to raise $3 million.
Last month, the rare earths-focused company signed a subscription agreement with Mr Xiaohua for the placement of 30 million shares at an issue price of 6 cents each, also to raise $3 million.
The company said the funds from both placements to Mr Xiaohua would go towards ongoing capital works.
The company’s flagship project is the Browns Range dysprosium project, located 160 kilometres south-east of Halls Head.
Northern Minerals is currently conducting testing at its project pilot plant.
Northern also announced it would issue Go & Company 20 million shares to provide consultancy services on future capital raisings.
Last month, Northern issued Go & Company 10 million shares for its consultancy services.
Gold explorer Golden Rim Resources announced it completed a bookbuild for a placement to raise approximately $2.25 million, via the issue of approximately 173 million shares at an issue price of 1.3 cents per share.
In a statement, Golden Rim said the majority of the funds from the placement would be used to advance the current mineral resource of 1.4 million ounces of gold at its Kouri project in Burkina Faso.
In particular, the funds will be used for reverse circulation and diamond drilling, exploration work including trenching and auger drilling, and completing the acquisition of the Goueli and Margou permits.
Golden Rim managing director Craig Mackay said the strong support for the placement validated the company’s strategy and allows it to undertake a significant drilling program to target its four highest priority target areas.
"We have also made a new gold discovery at Red Hill, negotiated the acquisition of the neighbouring Goueli and Margou permits and have undertaken a structural interpretation, which has identified a number of high priority areas for drill testing,” he said.
"I would like to thank our existing shareholders who supported this raising and welcome our new investors to Golden Rim, in particular, Capital Drilling, which took a cornerstone position in the placement.”
Hartleys acted as lead manager to the placement and Adelaide Equity Partners as co-manager.
Shares in Northern Minerals were up 2.45 per cent to trade at 4.2 cents each at 1.40pm AEDT.
Shares in Golden Rim were up 7.7 per cent to trade at 1.4 cents each at 1.30pmAEDT.