- Xanadu Mines (XAM) has entered a trading halt ahead of a capital raise
- The company has not said how much they are planning to raise and what the funds will be used for
- The trading halt means company shares will be paused until Monday, August 10, or when it releases more information on the capital raise
- Last month, Xanadu released its June quarter results — the company burnt $160,000 on operating activities and has nearly $2.9 million in the bank
- Xanadu shares last traded for 5.9 cents per share on August 5
Xanadu Mines (XAM) has entered a trading halt ahead of a capital raise.
The company has not said how much they are planning to raise and what the funds will be used for. However, the trading halt means company shares will be paused until Monday, August 10, or when it releases more information on the capital raise
June Quarter
Last month, Xanadu released its June quarter results, the company spent $160,000 on operating activities, bringing its cash burn total to $668,000 for the year to date.
Nevertheless, the company’s bank balance is strong, as it finished the quarter with nearly $2.9 million in the bank.
In its activities report, Xanadu said exploration is now underway at its Kharmagtai and Red Mountain projects.
Kharmagtai Copper-Gold Project
Exploration during the quarter at the Mongolia mine included drilling three diamond holes of approximately 2600 metres. The drilling tested the extensions to higher-grade mineralisation at Stockward and Zaraa prospects.
Red Mountain Copper-Gold Project
The Red Mountain Copper-Gold Project is a joint venture project with Xanadu and Japan Oil, Gas and Metals National Corporation (JOGMEC).
Recently, both companies entered an earn-in joint venture agreement. Under the agreement, JOGMEC can earn a 51 per cent interest by sole funding US$7.2 million of expenditure over four years, while Xanadu acts as manager of the project.
Exploration at Red Mountain kicked off over the June quarter, with one hole collared over the period. Further activity is currently underway and results are expected to be released in the September quarter.
Xanadu shares last traded for 5.9 cents per share on August 5.