PERTH (miningweekly.com) – ASX-listed junior Xanadu Mines will raise A$15.4-million through a share placement to institutional and sophisticated investors to fund exploration activities and to repay debt.
The company on Thursday reported that about 76.8-million ordinary shares would be issued at 20c each, under the company’s existing placement capacity, to both domestic and international investors.
The placement price represented a 2.4% discount to the company’s last closing price on September 25, and a 6.6% discount to the ten-day volume-weighted average share price.
“We are very delighted with the strong support received from our existing sophisticated and institutional shareholders, and are very pleased to welcome a number of international institutional shareholders as new shareholders into Xanadu,” said CEO Andrew Stewart.
“The strengthening of our balance sheet to now be debt free will allow Xanadu to vigorously pursue its drilling programmes unencumbered, which puts us in a very advantageous position.”