Waratah Minerals Limited (ASX:WTM), a company focused on discovering and developing economic mineral deposits, has announced it has secured firm commitments to raise A$30 million before costs, through a share placement. The placement, directed towards institutional, sophisticated, and professional investors, will see approximately 52.2 million new fully paid ordinary shares issued at A$0.575 per share.
The proceeds from the placement will be used to accelerate the company’s drilling program at the Spur Gold-Copper Project. Funds are allocated for extensional and resource drilling at the Spur Gold Corridor, initial metallurgical test work, further target definition geochemistry and geophysics, as well as for working capital and placement costs. Waratah Minerals currently has three drilling rigs on-site, and expects a steady flow of exploration results in the coming weeks and months.
The placement will occur in two tranches. The first tranche, amounting to approximately A$11.7 million, falls within the company’s existing placement capacity under ASX Listing Rules 7.1A. The second tranche, raising approximately A$18.3 million, is subject to shareholder approval at a General Meeting. The company anticipates holding an Extraordinary General Meeting late in September to approve the second tranche of the placement.
Waratah Minerals Managing Director, Peter Duerden, expressed his satisfaction with the strategic placement, noting the strong support from both existing and new institutional investors. Duerden believes the placement validates the company’s strategy and will facilitate an acceleration of exploration activities at the Spur Gold Copper Project. Bell Potter Securities Limited acted as Sole Lead Manager & Bookrunner to the Placement. Morgans Financial Limited and Blue Ocean Equities Pty Limited acted as Co-Managers to the Placement.
