PERTH (miningweekly.com) – ASX-listed Antipa Minerals will raise up to A$25-million through an institutional share placement and share purchase plan (SPP) to maintain its 35% interest in the Citadel joint venture (JV) with major Rio Tinto.

The company on Wednesday reported that it had received binding commitments to raise some A$22-million through the issue of 524-million shares at a price of 4.2c each to institutional shareholders.

The company’s largest shareholder, Newcrest, has committed to subscribe for some A$2.4-million to maintain its 9.9% shareholding in Antipa, while miner Independence Group has also committed to subscribe for A$1.2-million to maintain its 4.9% interest in the company.

The placement will be conducted in a single tranche under Antipa’s existing placement capacity.

In addition to the share placement, Antipa would also undertake an SPP to raise up to A$3-million. Under the SPP, shareholders will be able to subscribe for an additional A$30 000 worth of Antipa shares, also priced at 4.2c each.

“This highly successful raising enables Antipa to rapidly progress our exploration programme and economic evaluation studies at the Minyari Dome project and also to maintain our 35% interest in the Citadel JV with Rio Tinto, which the board considers has the potential to drive significant value for shareholders,” said executive chairperson Stephen Power.

“Both Minyari Dome and Citadel offer Antipa short- to medium-term production opportunities in Western Australia’s Paterson province with a significant exploration programme to be undertaken at both projects this year.”

Antipa and Rio earlier this month increased the exploration budget for the JV for 2021 from A$13.8-million to A$24.5-million. The exploration work at Citadel will include a 19 000 m reverse circulation and diamond drill programme, metallurgical test work and appraisal work on early stage project development options at the Calibre deposit.

At Minyari Dome, a diamond core and reverse circulation drill programme is also planned to start in early May, while project development studies will also be undertaken.