03/02/2012 - 15:13

WA miners raise $39m

03/02/2012 - 15:13

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WA miners raise $39m

Five small and mid-cap miners including Papillon Resources, Coalspur and Condoto Platinum have raised a total of $39 million in new capital to support operations that stretch from West Africa to Canada.

Papillon Resources has raised $16 million through a placement, managed by Azure Capital, of 21 million shares at 76 cents to a large number of London based institutional investors.

The raising will allow Papillion to continue its infill and extension drilling program at the Fekola gold project in Mali.

“The placement will remove short term financing risk at this extremely important stage of Papillon’s development,” managing director Alan Campbell said.

Bannerman Resources said its share-purchase plan had closed oversubscribed, raising $4 million through the issue of 17.8 million shares at 22 cents.

Bannerman has agreed to place a further 8 million shares to existing institutional investors at the price of 22 cents to raise $1.8 million.

The placement was managed by GMP Securities Australia.

The SPP and placement brings new equity raised by Bannerman in the last two months to $14 million.

Proceeds from the recent financial transactions will be used to fund the completion of a feasibility study on Bannerman’s flagship Etango Uranium project in Namibia by March 2012.

Condoto Platinum raised $4.2 million through its placement, managed by Veritas Securities, to fund exploration of its Condoto site in Columbia.

Canadian-Australian miner Coalspur said the company’s largest shareholder, Highland Park Group, had exercised its share options to purchase 15 million shares at 80 cents, compared to Coalspur’s current trading price of $1.72.

The investment provides an additional $12 million of capital for Coalspur’s projects, including the Vista coal project in Alberta, Canada.

Coalspur CEO, Gene Wusaty was encouraged by the share purchase.

“This is a very positive event for the company as it demonstrates the continued support from Highland Park,” he said.

Golden Rim Resources was also successful in its investment raising efforts, bringing in $6.9 million through a placement to fund drilling and exploration projects in Burkina Faso and Mali.

Bell Potter Securities acted as lead manager to the placement.

Golden Rim expects to finalise a contract shortly undertaking 1,500 metres of diamond drilling at the Balogo project in Burkina Faso, after the recent completion of drilling contracts at the site. 

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