Sandfire to raise $65m in placement, SPP

Explorer Sandfire Resources has unveiled a $65 million capital raising to continue exploration and study efforts at its Doolgunna copper-gold project in Western Australia.

The capital raising will comprise of a $50 million share placement which includes a $41 million placement to institutional and sophisticated investors and a $9 million placement to major shareholder, Posco Australia.

Sandfire said the institutional placement price will be set by way of a bookbuild.

In addition, Sandfire will make a $2.5 million conditional placement to non-executive director John Hutton, to maintain his shareholding in the company.

The Karl Simich-led company will also offer a share purchase plan to raise up to $15 million.

Funds from the raising will be used to complete a feasibility study at the DeGrussa project, which forms part of Doolgunna, and continue the exploration program at Doolgunna.

Funds will also be used to explore other base metal and gold projects in WA and the Northern Territory.

Shares in Sandfire were placed in a trading halt for the bookbuild, and last traded at $3.45.