PERTH (miningweekly.com) – ASX-listed Indochine Mining has completed the first part of a A$26.3-million capital raising, and has signed a deal with fellow-listed Capital Mining to dispose of an 85% shareholding in its wholly owned subsidiary, which owns gold assets in Cambodia.
Earlier this month, the precious metals developer announced a planned capital raising through an entitlement offer and share placement.
The company said on Tuesday that it had raised the first A$5.5-million of the capital from existing eligible institutional shareholders, whose offers under the entitlement offer was accelerated.
The balance of the entitlement offer would open on October 15, with eligible shareholders able to subscribe for two new shares for every five existing shares. The offer would close on November 1.
Meanwhile, Indochine has signed a heads of agreement with Capital Mining, which would see Capital acquire an 85% shareholding in subsidiary Indochine Resources.
Indochine has agreed to sell an initial 55% interest in the issued capital of Indochine Resources for a A$20 000 nonrefundable deposit and 40% of Capital’s shares on issue.
Indochine has also agreed to grant Capital the right to earn another 30% interest in Indochine Resources. The first 15% shareholding would be obtained after Capital sole-funded some A$6-million in exploration, within three years of settlement.
A further 15% interest could be obtained if Capital sole-funded another A$4-million of exploration work within three years of settlement.
The transaction was subject to the completion of due diligence, as well as regulatory and shareholder approval. The deal was also contingent on Capital raising a minimum of A$3-million through a share placement.
Indochine owns a number tenement packages in Cambodia, covering some 4 300 km2 and forming two blocks known as the Kratie and Ratanakiri projects.