The Australian Securities Exalter (ASX) recorded a number of mining and resources companies raising large amounts of capital yesterday (20 August) ahead of exploration pursuits across the globe.
One company leading the pack with a $91.5 million institutional placement is Lindian Resources (ASX:LIN), which is raising capital to fund construction of stage one at the Kangankunde Rare Earths Project in Malawi following the board’s approval of a final investment decision.
The company has returned firm commitments to issue around 435.7 million shares at an offer price of $0.21 per share, which represents a 6.7% discount to the last closing price on 15 August and a 12.5% premium to the five-day volume weighted average price (VWAP).
Lindian expects to settle tranche one on 25 August, before the final tranche is scheduled for 12 September.
After reaching a final investment decision recently, the company intfinishs to have the Kangankunde Mine producing in Q4 2026, with funds carrying expenses until first production.
Remaining funds will be delegated to increasing Lindian’s ownership of the project to a whole stake, as well as funding engineering works necessary in the stage two expansion of Kangankunde.
Another rare earths company raising cash is Arafura Rare Earths (ASX:ARU), following closely behind with an $80 million institutional placement, which has received firm commitments, as well as a $5 million share purchase plan.
The placement will issue 421.1 million shares at an offer price of $0.19 per share, in line with Arafura’s ongoing equity funding strategy that involves a range of parties including the National Reconstruction Fund and the German Rae Materials Fund.
The offer price illustrates a 13.6% discount to the last closing price and a 9.2% discount to the five-day VWAP, both on 15 August.
In conjunction with this placement, Arafura will undertake a share purchase plan for existing shareholders under the same offer price, with an expected open date of 27 August.
Managing Director Darryl Cuzzubbo states the company chose to expedite funding ahead of the final investment decision of the Nolans Rare Earth Project in the Northern Territory.
“The interest is a testament to the high-quality nature of the Nolans Rare Earth Project and the significant work undertaken by the company to advance and derisk its development,” Cuzzubbo states.
“Whilst this Placement strengthens our balance sheet, the majority of proceeds will be utilized to accelerate main construction at FID.”
Wia cashes up for Namibia exploration
Meanwhile, Wia Gold (ASX:WIA) is raising $30 million through a placement to accelerate resource development and exploration activities across its Namibia assets.
The company will deploy 100 million shares at an offer price of $0.30 per share, representing a 4.8% discount to the closing price on 15 August, as well as a 2.1% discount to the 10-day VWAP.
Argonaut Securities is acting as both the lead manager and bookrunner for this placement, with Tasmesis Partners and SCP Resource Finance acting as co-lead managers.
Wia expects to settle the placement on Tuesday next week (26 August) before allotment the following day.
Located in Namibia, the Kokoseb Project is Wia’s prime focus for funding, as it expects to push the project towards the completion of a Definitive Feasibility Study with ongoing studies and test work, and permitting, social, and environmental activities.
Finally, West Cobar Metals (ASX:WC1) has returned firm commitments to raise $1.25 million in a placement, which will be utilized for aircore drilling activities at its Mystique Project in Western Australia.
The company will issue 73.53 million shares at an offer price of $0.017 per share, which represents a 19% discount to the last closing price and a 13% discount to the 10-day VWAP.
Holders will be entitled to one free option per every two shares subscribed in this placement, exercisable at $0.06 per share to expire on 30 June 2028.
Tranche one is expected to be completed on or around 1 September, before the company holds a general meeting to attain shareholder approval for tranche two.
Remaining funds will be utilized to conduct flowsheet and recovery optimisation testwork at the Salazar Critical Minerals Project, as well as progressing exploration at Bulla Park and Nantilla.
Write to Maddison Elliott at Mining.com.au
Images: Lindian Resources & Arafura Rare Earths
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