Perth-based PLD Corporation will proceed with acquiring three zinc and nickel projects, including collapsed miner Kagara’s Admiral Bay zinc project, now that it has secured about $10 million from two mining finance managers, including Resource Capital Funds.
PLD will pay up to $7 million in cash and shares to fully own the Admiral Bay project, and has also announced it will acquire a 90 per cent interest in Heron Resources’ Rocky Gully nickel-copper project in the Fraser Range, and full ownership of Third Reef’s Rocky Gully East project, expanding PLD's focus from a nickel explorer.
The company will pay an up-front $1.28 million for the acquisitions.
In order to fund the acquisitions, PLD has signed a subscription agreement with Resource Capital Funds for a placement of about 68 million shares to raise $680,000, and a term sheet for the sale of a 1 per cent royalty at Admiral Bay, for about $6.5 million.
It also signed a term sheet with an unnamed mining finance fund for the sale of a 2.5 per cent royalty at Admiral Bay, worth about $3.3 million.
“Our $10 million financing underwrites the acquisition and development plan for the projects involving new technology, innovation and leadership,” PLD managing director Matthew Gauci said.
“While discussions with potential partners for Admiral Bay continue, we are satisfied that via these agreements, owning, funding and developing the projects 100 per cent will create more value for our shareholders.”
The acquisitions and prospectus for the financing are yet to be approved by PLD’s shareholders.
PLD shares were 14.2 per cent higher at 0.8 cents per share at 10:30am.
