Base metals producer Kagara has completed a $25 million share placement at 31 cents per share, to complete the acquisition of its Einasleigh copper project in Queensland and fund exploration activity.
The acquisition is expected to provide additional high margin copper revenue to Kagara’s growth and development plans.
The capital raising issued 80.6 million fully paid ordinary shares to institutional and sophisticated investors in Australia and internationally.
The raising will also fund the development of Kagara’s North Queensland properties and provide working capital.
Kagara’s managing director Geoff Day said in an announcement: “We are delighted by the strong support received for the placement from a large number of existing and new Australian, North American, European, and Asian Institutional investors.”
Casimir Capital is acting as global lead bookrunner and global lead manager, Wilson HTM Corporate Finance is acting as joint Australian lead manager and E.L. & C. Baillieu Stockbroking is acting as settlement agent and selling group member.
Perth-based Kagara also has assets in Western Australia, including the Admiral Bay development project and exploration in Forrestania.
Kagara is currently trading at 30.7 cents, after closing yesterday at 34 cents.