Minemakers raise $11.5m from placement

West Perth-based Minemakers Ltd has raised $11.55 million after placing 7.7 million ordinary shares to institutional and sophisticated investors.

The placement, at a price of $1.50 per share, was heavily oversubscribed by investors including offshore and domestic institutional funds and high-net-worth clients of BBY Limited.

The funds raised from the placement will be used for the Wonarah Rock Phosphate project pre-feasibility and feasibility, purchase of long lead-time capital items for Wonarah, Moina multi-commodity (Fluorite, Tungsten) studies, Tasmanian Tin or Tin/Tungsten project advancement, possible exercise of the option over the Fraser Iron Magnetite project and additional working capital.

Minemakers managing director Andrew Drummond said it was the first time institutional shareholders had invested in the company at a significant level, and the raising would help it complete several key tasks, especially taking the Wonarah Rock Phosphate project through to the end of feasibility.