Laneway looks to raise A$22.2m
PERTH (miningweekly.com) – Coal and gold developer Laneway Resources was looking to raise some A$22.2-million in capital to fund its exploration and feasibility activities at its Queensland and New Zealand gold projects, and its coal projects in New South Wales.
The company said that the capital raising would consist of a 16-for-one non-renounceable entitlement offer to raise some A$22-million, as well as a share placement of 10.25-million shares to sophisticated and professional investors, to raise a further A$0.2-million.
The entitlement offer price was set at 2c a share, representing a 42.9% discount to the latest Laneway closing price, and a 54.4% discount to the 30-day volume-weighted average price.
Laneway said that the capital raising was the next step in the company’s restructure and would provide a platform to enable the company to grow shareholder value going forward.
Since 2006, Laneway has been nearly entirely dependent on Bizzell Nominees for its funding, and said on Thursday that the entitlement offer could potentially facilitate the conversion of all Laneway’s A$18.9-million liability to Bizzell Nominees to shares.
At the conclusion of the offer, Laneway would be debt free and, depending on the take-up of the entitlement offer, would have up to A$3-million for exploration activities and working capital requirements.
By recapitalising the company, the board also believed that in addition to progressing its existing project portfolio, it would position Laneway to acquire additional assets at a time of depressed resource project valuations.
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