There were several $10 million-plus capital raisings in the September quarter among mining companies and those offering services in related areas.
One of the largest capital raisings for the quarter was by engineering services company, RCR Tomlinson, which raised up to $24.2 million through a share placement with corporate adviser Hartleys Ltd to strengthen the company’s balance sheet, provide additional working capital and allow it to undertake further acquisitions.
Last month, RCR Tomlinson brought its acquisitions of companies since 2003 to 12 with the purchase of Canning Vale-based boiler services company Boilergenics Ltd for $3.2 million.
Other substantial capital raisings included those by gold explorer Wedgetail Exploration and base and precious metal explorer Summit Resources, which raised $17.5 million and $14.4 million respectively. Wedgetail plans to fund its ongoing development and exploration of the Nullagine gold project to enable the commencement of mining, while Summit will fund its ongoing uranium, base metal and iron ore exploration and development activities at its Mt Isa operations.
Diversified miner Grange Resources Ltd aims to raise $12 million through a placement to American investors to fund iron ore mining operations and boost land holdings. Mineral explorer Tanami Gold NL aims to raise $10 million through a placement with Hartleys Ltd to tide it over following delays in the commissioning of its Coyote treatment plant.
Western Australian stockbroking firms have experienced good times on the back of the current activity in the market, with Euroz, Hartleys and Paterson Securities all announcing increases in net profit for 2005-06.
Euroz returned an 82 per cent jump in net profit to $16.8 million, while Hartleys’ profit for the year rose from $4 million to $8.5 million. Paterson Securities announced a 42 per cent increase in net profit to $5.1 million.
