Strandline completes $6.5m raising

Strandline Resources has completed a raising announced in January, while Southern Gold has cut the size and pricing of a planned capital raising.

West Perth-based Strandline intends to use the proceeds to fund the development of its flagship Coburn mineral sands project in Western Australia.

The company issued around 16.6 million shares at 12 cents per share to raise $2 million, with Hartleys having acted as lead manager to the placement.

Strandline raised a further $4.5 million through a one-for-10 rights issue on the same terms as the placement, with the balance of shortfall shares placed to specialist mining fund Tembo.

Strandline says it will use the funds specifically to procure major construction contracts and offtake agreements, debt financing and partner arrangements.

Proceeds will also go towards funding for Strandline's wholly owned mineral sands project in Tanzania.

Its shares were trading at 8 cents per share at 3:40pm AEDT.

Meanwhile, Adelaide-based explorer Southern Gold has restructured a $10 million placement announced in February.

Managing director Simon Mitchell said an unprecedented market had affected the initial capital raising.

Southern Gold will now raise $4 million through the issue of 40 million shares at 10 cents per share, with investment specialist Metal Tiger PLC, based in the UK, subscribing for around $2.2 million (previously $3.3 million).

The placement will be issued in two tranches, with the first to be completed immediately.

Upon completion of the first tranche, Southern Gold’s cash balance is estimated to be around $4 million.

The South Korea-focused explorer said it would use funds to lift its exploration efforts, such as doubling its field teams and diamond drilling rate.

It said the raising would fund exploration activities for at least 12 months.

Shares in Southern Gold were down 8 per cent to trade at 12 cents at 10:30am AEDT.