Juniors to raise $10.4m

Perth-based junior miners MOD Resources, Primary Gold and Alloy Resources have announced plans to raise a combined $10.4 million to fund ongoing work at their respective projects

Primary Gold says it has received firm commitments for the placement of 100 million shares at 4 cents each to raise $4 million.

The company plans to use the funds to further develop its Mount Bundy gold project east of Darwn, including recommencing production at its Toms Gully mine.

“The company will be assessing opportunities to increase the mine life at Toms Gully and to further underpin the company’s longer term growth,” Primary said in a statement.

Patersons Securities brokered the raising.

Mod Resources told the market today that it had successfully raised $2 million through the placement of 66.7 million shares at 3 cents each to investors, and planned to raise a further $3.1 million through a rights issue.

The proceeds of the raising will be used to fund a drilling program at the company’s Botswana gold and silver project, as well as paying off a loan and providing for working capital requirements.

Blue Ocean Equities acted as lead manager to the raising.

Meanwhile, Alloy Resources has tapped investors for a $1.32 million raising, through the placement of 120 million shares at 1.1 cents each to investors.

The funds raised will be used to contribute Alloy’s 40 per cent expenditure requirement at the Horse Well gold joint venture project.

Doray Minerals farmed-in on the Horse Well project in 2014.

Bell Potter Securities brokered the placement.

Primary shares closed 24 per cent higher to 6.2 cents each, while Mod shares were 3 per cent higher to 3.4 cents each at the close.

Alloy shares were unchanged at 1.3 cents each.