Subiaco-based Ampella Mining has raised $4.5 million more than the targeted amount in its recent share placement, bringing the total amount raised in the past 12 months to $25 million.
The announcement is below:
Ampella Mining Limited (ASX: AMX, AMXO) is pleased to announce that it has raised $16.5 million (before costs) via the placement of 30 million ordinary shares at 55 cents per share.
In light of the overwhelming demand, the Board of Ampella decided to increase the placement from $12 million as announced on 20 November 2009 to $16.5 million. The issue price of 55 cents represents an 11% discount to the Company's 10 day VWAP being 62 cents.
The funds, which will add to the approximately $3.5 million already held by Ampella, will be used to accelerate exploration at its Batie West Project in Burkina Faso and, in particular, for further drilling at Konkera in the lead-up to the initial resource calculation. Funds will also be used to follow up earlier drilling at some of the other prospects previously identified, to commence exploration on its newly acquired land packages and for general working capital purposes.
Evan Cranston, Executive Director - Corporate for Ampella, said that the placement closed early and was heavily oversubscribed. "The demand for the stock was overwhelming and we are very pleased to have raised the funds at a slight discount to Ampella's 10 day VWAP."
Mr Cranston said "Ampella has had a successful 12 months, raising over $25 million in 4 separate raisings." He said Ampella thanked its existing institutional investors for their continued support and welcomed the new institutional and sophisticated investors from Australia and overseas to its register.
Approximately 19.32 million shares to raise $10.626 million will be placed pursuant to the Company's 15% capacity and the remainder will be subject to shareholder approval. A general meeting of shareholders will be called in January 2010.
The placement was Lead Managed by Australian stock broking firm, Patersons Securities Limited. The shares were issued to various Australian and international institutional and sophisticated investors and clients of Patersons, DJ Carmichael and UK-based Fairfax IS plc, who also participated in the placement.
