Three miners to raise $34m

Mid-cap exploration companies Rey Resources, Deep Yellow and Arafura Resources have announced capital raisings worth a collective $34 million to fund works at their respective projects.

Rey will raise up to $13.8 million to advance the exploration drilling program at its Duchess Paradise thermal coal project in the Canning Basin, in WA’s Kimberley region.

The funds will also be used to progress its approvals and for general working capital.

The company has entered share subscription agreements with ASX-listed investment company ASF Group, which holds exploration tenements adjoining Duchess Paradise, to issue up to 115 million shares at 12c each.

Rey and ASF have also agreed to negotiate a potential transaction over the Duchess Paradise project, with ASF saying it will seek to help Rey facilitate the development of the project.

Rey plans to issue the shares via two placements, with the first comprising 25 million shares to raise $3 million to be issued within three days of its available placement capacity and the remaining 90 million shares, worth $10.8 million, to be issued subject to shareholder approval.

When the share placement is completed ASF will be Rey’s largest shareholder, holding a 22.5 stake, and can also nominate two directors to the company board.

Advanced stage uranium explorer Deep Yellow plans to raise $10.5 million via an entitlement issue ahead of expected resource upgrades and metallurgical testworks at its Omahola project in Namibia.

The company will conduct a 2 for 9 non-renounceable entitlement issue to shareholders at 4.2 cents per share.

The issue will be partially underwritten up to $5.8 million by Patersons Securities, together with major shareholder Paladin Energy which will sub-underwrite the issue to $4 million.

Rare earths company Arafura Resources will raise $9.9 million to progress feasibility works for its Nolans project in the Northern Territory.

The company has entered into a letter of intent with its largest shareholder ECE Nolans Investment Company which will subscribe for 45.2 million shares at 22c each.

The subscription will increase ECE’s stake in Arafura to 24.8 per cent of issued capital.

Under a separate memorandum of understanding ECE will halve the number of nominee directors on Arafura’s board to one.