25/01/2005 - 21:00

Mining stocks bring in dollars

25/01/2005 - 21:00

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Mining stocks bring in dollars

The buoyant stock market and strong commodity prices have enabled a raft of Western Australian resource companies to raise additional capital this month for expansion projects.

Kagara Zinc has raised $15.4 million through a placement to Korea Zinc Co, which has previously provided funding through a $US12 million ($A16 million) convertible note issue.

Kagara said the proceeds of the placement would be used to fast-track development of a second base metals treatment facility in north Queensland.

Another deal announced this week was Jabiru Metals’ $5.95 million placement, through broking firm Hartleys, to support its drilling program.

Tanami Gold will maintain its stake in Jabiru by subscribing for $1.1 million of the issue.

Hartleys is also managing a $2.6 million placement for Murchison United

Other recent deals include Sphere Investments’ $1.7 million placement to clients of Euroz Securities.

It will use the funds to advance its iron ore project in Mauritania, in West Africa.

Euroz also managed a $7.5 million capital raising by Adelphi Energy, formerly the cashbox company Clearview Capital. Adelphi plans to ‘farm in’ to a petroleum exploration permit in the Timor Sea in a venture with Arc Energy, which has invested $3.5 million for a 25 per cent stake in Adelphi.

The biggest capital raising completed this year was LinQ Resources Fund’s initial public offering, which raised $82.9 million.

Patersons Securities was lead manager for the IPO, which was $17.9 million over-subscribed.

Patersons has also managed a $5.5 million rights issue for embattled Titan Resources, as well as capital raisings for several industrial companies.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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