PERTH (miningweekly.com) – Copper and gold explorer Xanadu Mines has raised A$10-million through an oversubscribed placement to accelerate resource drilling at its Kharmagtai copper/gold project, in Mongolia.
The placement comprised some 58.9-million shares, priced at 17c each, to institutional and sophisticated investors.
Participants in the placement will also receive one free attaching unlisted option for every two shares subscribed for, with a strike price of 25c, and a two-year term. Some 29.4-million unlisted options will be issued.
Xanadu said that both the shares and the options will be issued under the company’s placement capacity, and will not require shareholder approval.
“The board of Xanadu are extremely pleased with the strong support received from our existing sophisticated and institutional shareholders, and are very pleased to welcome several international institutional shareholders as new shareholders to Xanadu,” said CEO Andrew Stewart.
“The placement enables us to further strengthen our share register and balance sheet, allowing Xanadu to complete the resource drilling programme at Kharmagtai unencumbered, and provide an updated mineral resource estimate before the end of 2018.”
Stewart said that Xanadu would also progress testing of high priority targets to make new discoveries and to grow existing deposits.
“Xanadu believes being fully funded to complete this exciting phase places the company in a very advantageous position to maximise the benefits from the high demand and high prices for copper and gold.”