04/03/2016 - 14:02

Juniors to raise $12m

04/03/2016 - 14:02


Save articles for future reference.

Three local junior miners plan to raise a combined $11.6 million to fund their respective operations.

Australian Vanadium, Kidman Resources and European Metals hope to raise a combined $11.6 million from investors.

Three local junior miners plan to raise a combined $11.6 million to fund their respective operations.

Perth-based explorer Australian Vanadium is conducting a one-for-three non-renounceable rights issue to raise up to $3.32 million, at 1.3 cents per share.

The offer, which is a 22 per cent discount to the company’s five-day volume weighted average price, was partially underwritten by CPS Capital Group by up to $500,000.

The proceeds of the raising will be used to fund ongoing work in the company’s vanadium battery marketing division, and to build a vanadium electrolyte plant in Australia.

Chief executive Vincent Algar said that, in light of the strong resource estimate and the booming energy storage market, the Australian Vanadium wanted to proceed rapidly on all fronts.

“With the foundation for a world-class project now established, this raising will give us the funding required to advance our vanadium battery marketing and project studies,” he said.

Australian Vanadium owns its Gabanintha project, located near Meekatharra.

Kidman Resources has received commitments for a $3 million placement, and plans to undertake a one-for-three $3.5 million rights issue, both at 8.5 cents per share, to assist with the company’s acquisition of the Mt Holland goldfield near Southern Cross.

The raising was priced at a 19.5 per cent discount to Kidman’s 15-day VWAP, and will also be used to fund a drilling program at Mt Holland once the acquisition is completed.

PAC Partners acted as lead manager to the raising.

Meanwhile, European Metals has tapped investors for a $1.755 raising through a placement, which was priced at 13.5 cents.

The placement is a 3 per cent discount to the company’s five-day VWAP.

The funds will be used to further develop the company’s Conovec lithium and tin project in the Czech Republic.

“The funds will enable us to complete an advanced drilling program designed to convert a significant portion of the existing resource to the indicated category which will form the basis of our preliminary feasibility study and assist with the marketing of the company’s potential lithium supply to global battery manufacturers,” chief executive Keith Coughlan said.

Australian Vanadium shares were 6.2 per cent lower to 1.5 cents each at the close of trade, while Kidman shares gained 4.5 per cent to 11.5 cents each.

European Metals shares gained 3.3 per cent to 15.5 cents each.


Subscription Options