Xanadu Mines will use the bulk of A$12.17 million raised in a placement to advance its copper/gold prospects in southern Mongolia. There was strong support from existing institutional and sophisticated investors.
Major shareholders participated in the placement, continuing their support of the company, while a number of well-regarded institutional investors were introduced to the register.
The company received irrevocable commitments to subscribe for 60.83 million ordinary fully paid shares. The placement shares will be issued pursuant to the 15% placement capacity imposed by the ASX.
The funds, together with existing cash reserves, will allow the company to continue the momentum at the Kharmagtai Copper-Gold Project and the new gold discovery at the Oyut Ulaan project.
In addition, following the success of this capital raise and considering the company’s healthy cash position, Xanadu has agreed with Noble Resources International that the remaining US$1.5 million available under the finance facility first announced on February 3, 2014 as part of the Kharmagtai acquisition arrangement will not be drawn. The balance of US$2.7 million remains due in July 2017.
Xanadu’s executive director and CEO Dr Andrew Stewart said, “We are delighted with the strong demand for the placement from our existing sophisticated and institutional shareholders, and are very pleased to welcome a number of well‐regarded institutional investors to the register.
“Xanadu is in a privileged position with a growing JORC-compliant gold-rich copper resource and new bonanza gold grades. The yield from our counter-cyclic approach highlights that now is the time to be leveraged to exploration upside and our discoveries are ready for the next boom.”