- Xanadu Mines (XAM) has received firm commitments to undertake a $10.2 million placement
- Roughly 163.8 million fully paid ordinary shares will be issued to professional and sophisticated investors at 6.2 cents
- This price represents a 15.1 per cent discount to Xanadu’s last close of 7.3 cents on April 20
- Xanadu will use the funds to undertake phase two exploration at the Kharmagtai Project in the South Gobi region of Mongolia
- Shares in Xanadu are down 11 per cent and are trading at 6.5 cents
Xanadu Mines (XAM) has received firm commitments to undertake a $10.2 million placement.
The company entered a trading halt on April 21 but did not disclose how much it intended to raise or what it would use the funds for.
Roughly 163.8 million fully paid ordinary shares will be issued to professional and sophisticated investors at 6.2 cents.
This price represents a 15.1 per cent discount to Xanadu’s last close of 7.3 cents on April 20, and a 13.2 per cent discount to the five-day volume-weighted average price of 7.1 cents.
Xanadu will use the funds to undertake phase two exploration at the Kharmagtai Project in the South Gobi region of Mongolia.
Shares are expected to settle on April 30 and be allocated and begin trading on the ASX on May 3.
“This placement continues to strengthen our share register and fully funds Xanadu to execute its exploration strategy at Kharmagtai,” Non-Executive Chairman Colin Moorhead said.
“Investors can look forward to a period of strong exploration news flow as we embark on an aggressive drilling program to define the higher grade, gold-rich bornite zones at depth and unlock the next stage of development in this globally significant copper-gold project,” he added.
Shares in Xanadu are down 11 per cent and are trading at 6.5 cents at 2:12 pm AEST.