Minemakers lines up $15m equity fund

Perth-based minerals explorer Minemakers says it has secured a $15 million equity facility with New York-based Haverstock Fund.

The terms of the facility will allow Minemakers to issue shares to Haverstock at any time over the next 36 months, up to a total value of $15 million, in draw-downs of up to $1 million.

Shares issued to Haverstock will be priced at 94 per cent of Minemakers’ 10-day volume weighted average price at the time of the draw-down.

“Minemakers’ board is very pleased to have secured this facility,” managing director Andrew Drummond said.

“At a time of generally difficult capital raising conditions due to world financial problems, it will give Minemakers the flexibility and ability to maintain momentum on the feasibility and early development of our phosphate projects.

“We are under no obligation to use the facility; we are not locking anything in at a time of weak global share prices; it is very competitively priced compared to the discounts one would expect to suffer in a tough market, and there are no non-usage fees.”

At 10:15AM (WST) Minemakers shares were down 3.2 per cent, at 29.5 cents.