Saturn Metals secures $6m to advance Apollo Hill gold project, WA

• Saturn Metals (ASX:STN) secures $6 million in a two-tranche share placement priced at 12.5 cents, which was supported by shareholders and institutional investors to progress the development of the 1.84Moz Apollo Hill gold project
• ASX-listed Lion Selection Group took a cornerstone investment with a $3 million commitment to raise
• The largest shareholder, Toronto-based mining investment firm, Dundee Corporation, contributed to maintain its existing 19.99 per cent stake in Saturn Metals
• A $2 million SPP will open to investors next week
• Saturn Metals has been trading close to the raise price at 13 cents

Major investors have backed a $6 million capital raising by Saturn Metals (ASX:STN) to progress the 1.84Moz Apollo Hill gold project 60 kilometres southeast of Leonora in the Western Australian goldfields.

The funds were raised with 12.5-cent shares to support further drilling campaigns, advanced heap leach processing studies and pre-feasibility study activities.

The company’s largest shareholder, Toronto-based mining investment firm Dundee Corporation, subscribed for 9,552,000 shares to maintain its holding of 19.99 per cent in Saturn Metals.

Lion Selection Group (ASX:LSX) joined the register, investing $3 million and subscribing for 24 million shares, representing a holding of 11.5 per cent. Lion recently made a smaller, $250,000 investment in Sunshine Metals (ASX:SHN) via a placement.

Lion Founder and Director Robin Widdup said Lion was closely monitoring the mining cycle.

“We haven’t updated the Lion clock time, but are certain it is now after midnight, and we are seeing widespread examples of funding pressure which is generating attractively priced opportunities,” he said.

“Saturn and Sunshine both have established resources and strong management teams with conviction in their projects, and they both fit the pattern of investments Lion likes to make.”

The placement shares will be issued in two tranches and will rank equally with the company’s existing fully paid ordinary shares.

The first tranche will be issued next week, while the second tranche of nearly 19.5 million shares will be conditional upon shareholder approval at the annual general meeting late next month. 

The offer price represented a 21.9 per cent discount to the closing price of 16 cents last Thursday and a 15.7 per cent discount to the 10-day volume weighted average price of 14.8 cents.

Next Monday, a share purchase plan (SPP) opens in a bid to raise up to $2 million more at the same offer price. 

Saturn Managing Director Ian Bamborough said the support for the raise so far was appreciated. 

“This funding will enable the company to take significant steps along that development pathway with the aim of unlocking the full value potential of the project and our exploration tenure,” he said.

The company plans to develop Apollo Hill into a bulk, open pit gold mining operation.

Saturn Metals has been trading close to the raise price at 13 cents.