22/05/2015 - 10:12

Local miners raise funds

22/05/2015 - 10:12

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Perth-based gold and base metals miners Metallum and Paradigm Metals have announced plans to raise a combined $3.7 million to fund ongoing work at their respective tenements, while Dynasty Resources announced its intention to raise $2.2 million but then later withdrew its proposal.

Metallum is acquiring a 90 per cent stake in the El Roble copper project in Chile.

Perth-based gold and base metals miners Metallum and Paradigm Metals have announced plans to raise a combined $3.7 million to fund ongoing work at their respective tenements, while Dynasty Resources announced its intention to raise $2.2 million but then later withdrew its proposal.

Metallum, formerly known as Mining Group, said it has received firm commitments for a $1.5 million capital raising through the placement of 250 million shares at 0.6 cents each to institutional investors.

The company expects that it will be debt free following completion of the raising, with the funds to be used to repay outstanding convertible securities.

It will also use the proceeds to fund an option payment in respect of its $US6 million acquisition of a 90 per cent stake in the El Roble copper project in Chile, which it initiated in 2013, and fund an expansion of mining activities at the site.

“The company intends to upgrade the onsite accommodation facilities at El Roble and expand its site workforce to support the planned production increase,” managing director Zeffron Reeves said.

“In addition, we will be purchasing our own underground diamond drilling rig, which will greatly assist in mine planning and scheduling and also with resource expansion drilling as part of the development pathway for the project.”

Merchant Corporate acted as lead manager to the placement.

Dynasty Resources was planning a private placement and non-renounceable rights issue to raise $2.37 million, but released a statement later today saying it had withdrawn the proposal, but would still proceed with the issue at a later time.

It had proposed a placement of 14.6 million shares to a Hong Kong-based sophisticated investor to raise $146,000, while a three-for-two rights issue at 1 cent each would have been made to eligible shareholders to raise $2.2 million.

Dynasty said the funds would be used to maintain its most prospective tenements, fund operational expenses and provide working capital for the company to pursue strategic opportunities.

Paradigm Metals has meanwhile engaged Lodge Corporate to act as lead manager to a rights issue to its existing shareholders on a six-for-seven basis at an issue price of 0.3 cents each, to raise $2.2 million.

“This offer will allow the company to advance its exploration strategy following the successful completion of the first drilling program at its Caninde graphite project in Brazil,” Paradigm said.

Dynasty shares were unchanged at 1 cent each, Metallum shares were unchanged at 0.7 cents each, and Paradigm shares were unchanged at 0.2 cents each at 10am.

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