Padbury locks in Chinese investor

Padbury Mining could soon end its 15-month ASX trade suspension after attracting a private Chinese investor for a $2 million capital raising.

The Perth-based explorer announced today it had executed an agreement with Du Yong Yi for the subscription of 200 million shares at 1 cent each to raise $2 million.

Mr Du is a private Chinese investor and is also managing director and major shareholder of Sunten LKE Power.

The price of the raising is a premium to the company’s last closing price of 0.7 cents per share, which was in December 2014.

Proceeds of the raising will be used to maintain its tenements and for working capital.

“The shares will be held in escrow for 12 months and a holding lock will be applied,” the company said in a statement.

Last week, Padbury reported an $833,749 loss for the six months to December, an improvement on the $2.6 million loss reported in the previous corresponding period, while revenue generated totalled just $1,081.

Padbury is exploring for iron at its Peak Hill tenements in the Mid West.