Miners and fishers line-up for funding

A range of Western Australian companies has gone to the market looking for funding lately, confirming the continued strong investor appetite for stocks.

While there was an expected strong flavour of hard rock stocks in the mix on the back of soaring prices for commodities such as iron ore, nickel, uranium and gold, fishing-focused operators are also making an appearance.

One of the biggest raisings was by Subiaco-based uranium explorer Paladin Resources.

Paladin, whose share price has run hot over the past 18 months on the back of increasing uranium prices, recently agreed to place 36 million $1.05 shares, primarily with offshore investors, to raise $37.8 million. 

Paladin says it will use the cash to develop the Langer Heinrich uranium project in Namibia.

Another significant raising under way is by Midwest Corporation, which is trying to raise a reported $30 million through a placement by Patersons Securities.

The majority of the funds have been earmarked for capital expenditure on the company’s iron ore pellet project near Geraldton, with the remainder divided between further exploration and working capital.

The Andrew Forrest-chaired Hibernia Gold is also looking for a significant amount of money, however for a much lesser known commodity – molybdenum – which is added to stainless steel and has been enjoying strong world prices.

Hibernia, looking to conduct a 15-month feasibility study on its Spinifex Ridge molybdenum project in the Pilbara, wants to raise $18.9 million from US investors to fund the study.

The raising is being handled by a New York placement agent and is priced at $1.40 per share compared with Hibernia’s current price of $1.70.

Meanwhile, another iron ore stock, Grange Resources, is looking to fund a $13 million bankable feasibility study on its Southdown magnetite iron ore project near Albany.

The company hopes to develop a pellet-producing operation in Malaysia capable of producing 6.8 million tonnes per annum worth about $800 million.

Grange has engaged Patersons, as well as BBY, to act as joint lead managers to raise the $13 million in an underwritten rights issue.

While resources stocks were looking to cash in on their popularity, so too were fishing stocks.

Emerging Australian aquaculture fund Marine Produce Australia wants to raise about $4 million through a non-renounceable rights issue and an institutional placement to grow its tiger prawn and saltwater barramundi businesses.

The raising will be handled by Perth-based broking house Argonaut Securities.

Fremantle-based fleet operator Deep Sea Fisheries is proposing to raise up to $1.4 million to fund a non-renounceable rights issue upgrade program of the group’s fleet.

Other stocks to recently announce capital raisings include Polaris Metals ($836,000), First Australian Resources ($1.3 million), Equinox Minerals ($8.6 million), AIM Resources ($3.5 million), and Aviva, which successfully placed 20 million 5-cent shares with investors to raise $1.5 million.