- Xanadu Mines (XAM) taps investors for $1.1 million through a share placement
- The funds will provide working capital during final approvals for the company’s partnership with Zijin Mining to progress its Kharmagtai copper-gold project in Mongolia
- 41.8 million new fully paid ordinary XAM shares will be issued at 2.7 cents
- The placement is scheduled to settle on January 23
- XAM shares are up 6.9 per cent, trading at 3.1 cents at 1:11pm AEDT
Xanadu Mines (XAM) has launched a placement to raise $1.1 million to provide working capital during final approvals for its partnership with Zijin Mining Group.
Eligible shareholders have committed to purchasing 41.8 million new fully paid ordinary XAM shares at 2.7 cents each, a seven per cent discount to the 30 day volume weighted average price.
In April 2022, Xanadu Mines partnered with Zijin Mining to progress its Kharmagtai copper-gold project in the South Gobi region of Mongolia.
Under the agreement, Zijin Mining will invest up to $11 million into Xanadu and up to a further US$35 million (A$47.5 million) into Kharmagtai.
Funds from the placement along with Xanadu’s existing cash reserves will be used during the final approval stages of the partnership.
The Placement is scheduled to settle on January 23 with allotment and trading on January 24.
XAM shares were up 6.9 per cent, trading at 3.1 cents at 1:11pm AEDT.