Santana Minerals hoping to raise A$18.5m
PERTH (miningweekly.com) – ASX-listed Santana Minerals will raise A$15.5-million in a share placement to fund exploration work and studies at its Bendigo-Ophir gold project, in New Zealand.
The company on Friday said it had received firm commitments from sophisticated, professional and institutional investors for the placement of 24.8-million shares at a price of 62.5c each.
The offer price represented a 10.8% discount to Santana’s five-day volume weighted average share price.
The shares will be issued under the company’s existing placement capacity, and as such will not require shareholder approval.
In addition to the share placement, Santana will also undertake a share purchase plan (SPP) to raise a further A$3-million, allowing existing shareholders to subscribe for up to A$30 000 of new shares in the company at the same price as the placement.
The SPP will open on May 12 and close on June 2.
Funds raised will go towards exploration and infill drilling, as well as technical and environmental studies at the Bendigo-Ophir project, as well as for general working capital purposes. Santana currently has four rigs in operation at the gold project focused on infill, extensional and regional exploration drilling.
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