Photo by: Bloombeg
PERTH (miningweekly.com) – ASX-listed junior Xanadu Mines has raised A$8-million through a share placement, with the company on Thursday announcing a share purchase plan to raise a further A$2-million.
Xanadu told shareholders it had received irrevocable commitments to subscribe for 64-million ordinary fully paid shares priced at 12.5c each.
The placement would be completed in two tranches, with the first tranche comprising 56.2-million shares to be issued under the company’s 15% placement capacity.
The second tranche of 7.8-million shares would be subject to shareholder approval.
“We are delighted with the strong support received from our existing sophisticated and institutional shareholders and are very pleased to welcome a number of investors as new shareholders in Xanadu,” said CEO Andrew Stewart.
The funds raised from the placement would be used to reduce the deferred acquisition consideration of its Kharmagtai copper/gold project, in Mongolia, and to support winter exploration at the project.
The Kharmagtai project is a joint venture between Xanadu and Mongol Metals, under which Xanadu has the right to earn an 85% interest by funding acquisition and exploration costs.
In conjunction with the placement, Xanadu was offering shareholders the opportunity to subscribe for A$15 000 in shares, at a price of 12.5c each, to raise an additional A$2-million.
The share purchase plan would open on November 19 and close on December 4.