PERTH (miningweekly.com) – Diversified supply chain group Noble has increased its shareholding in ASX-listed Xanadu Mines to 9%, after taking up a subscription shortfall in the company’s recent rights issue.
Noble took up more than 5.5-million shares, at 12c each, for a total investment of A$665 746.
Xanadu told shareholders on Thursday that with the investment from Noble, the company had successfully raised about A$15.3-million through the share placement and rights issue.
Xanadu would use half of the generated funds to pay down up to $10-million of the 18-month deferred consideration for the $14-million deal to acquire a 90% interest in Turquoise Hill subsidiary Oyut Ulaan, which holds the Kharmagtai porphyry copper/gold project, in the South Gobi region of Mongolia.
The acquisition was completed in May last year, with $4-million of the consideration already paid by Xanadu subsidiary Mongol Metals.
The company said that the financial strength and flexibility provided by the capital raise would ensure that the company was well capitalised to unlock value at the Kharmagtai and Oyut Ulaan copper/gold projects.