Three juniors to raise up to $13.3m

Three local junior resources companies are undertaking capital raisings, with Sovereign Metals to raise up to $5.3 million, Global Energy Ventures up to $5 million, and Northern Minerals to raise $3 million.

Graphite explorer Sovereign said it had secured commitments from investors to subscribe for $4.3 million via a placement of 66,700,000 shares at 6.5 cents each, which represents an 11 percent discount to its 30-day volume-weighted average price.

The company also intends to issue up to an additional $1 million through a share purchase plan, which would allow eligible shareholders the opportunity to each invest up to $14,950 each.

Sovereign managing director Julian Stephens said the funds would advance a definitive feasibility study at its flagship Malingunde flake graphite project in Malawi.

Global Energy is seeking to place up to $4.5 million worth of shares at an issue price of $0.15, which represents a 16.5 per cent discount to its 20-day volume-weighted average price.

The Africa-focused oilfield services company will allow for oversubscriptions up to a maximum of $500,000.

Foster Stockbroking will act as sole lead manager to the offer.

In a statement, Foster said cornerstone support has already been secured for $3.5 million.         

The funds will be used to strengthen the balance sheet for working capital, advance ongoing compressed natural gas project development activities, and the selection and contracting of shipyards.

Northern Minerals announced it had entered into a subscription agreement with businessman Liu Xiaohua for the placement of 30 million shares at an issue price of 6 cents each, raise $3 million.

The company said the funds would go towards ongoing capital works.

Northern also announced it would issue Go & Company 10 million shares to provide consultanty services on future capital raisings.

Shares in Sovereign were down 3.8 per cent to trade at 7.6 cents each at the close of trade, while shares in Northern were up 4.4 per cent to trade at 4.8 cents each at the close of trade.

Global Energy was in a trading halt.