Two resource companies, Saturn Metals and James Bay Minerals, have launched capital raising initiatives, capitalising on the recent rally in gold prices. These moves aim to bolster exploration efforts and potentially fund mergers and acquisitions within the sector. Saturn Metals is focused on gold exploration, developing its Apollo Hill project. James Bay Minerals is an exploration company focused on lithium properties in Quebec, Canada.
Saturn Metals has announced a $35 million placement priced at 58 cents per share, representing a 15.9 per cent discount to its last closing price. Canaccord Genuity and Petra Capital are acting as joint lead managers for the placement, with bids due by 4 pm Tuesday. This capital injection will support the ongoing development of Saturn’s Apollo project in Western Australia, an area proximal to gold mines operated by Northern Star, Gold Fields and AngloGold Ashanti.
Saturn Metals has experienced substantial growth this year, with its shares increasing by over 220 per cent. The company’s strategic positioning near established gold producers has contributed to investor confidence and market interest. The placement is designed to further advance the Apollo Hill project and potentially facilitate strategic acquisitions in the gold sector.
