PERTH (miningweekly.com) – Metals miner Aurelia Metals has launched a non-renounceable rights issue to raise some A$10-million to fund a drilling campaign at it Hera-Nymagee project, in New South Wales, as well as to pursue potential growth transactions.
The miner said on Tuesday that it would offer eligible shareholders the opportunity to subscribe for one new share, for every eight held, at a price of 23.4c a share.
The offer price was an 8.5% discount to Aurelia’s 30-day volume weighted average price, and an 8.2% discount to the company’s last closing price.
The offer was fully underwritten by Key Pacific Advisory Partners and fully sub-underwritten by the company’s largest shareholder Pacific Road Capital Management.
“On the completion of this rights issue, Aurelia will be very well placed to lift its exploration activity, pursue potential company growth transactions, as well as retaining a sensible working capital,” said MD Rimas Kairaitis.
Aurelia was in the final stages of commissioning its Hera gold-lead-zinc mine, which poured its first gold earlier this year. The first lead-zinc concentrate was also shipped in November.
The project was expected to deliver some 39 000 oz/y of gold and 18 600 t/y of lead-zinc.
Aurelia was also undertaking an exploration campaign at the project area to build on previous exploration success that had not been incorporated into the project’s 1.8-million tonne initial reserve. The company was hoping to use the funds from the rights issue to increase the resource estimate at both the Hera and Nymagee deposits.