Join our daily newsletter At The Bell to receive exclusive market insights
Miners have led the capital raising this week, hauling in hundreds of millions of dollars through share placements.
Emerging lithium producer Sayona Mining (SYA) led the way, announcing a $190 million bookbuild to restart production from its operations in Quebec.
The North American Lithium project is on track to produce spodumene concentrate from the first quarter of next year. Sayona plans to release a definitive feasibility study later this year.
The company issued over one billion shares at 18 cents to institutional, professional and sophisticated investors at about a 12 per cent discount to its last closing price.
Today, shares gained more than six per cent, trading above 21 cents at 1:25 pm AEST.
Managing Director Brett Lynch said the raise was a “major vote of confidence” for the company.
“We advance towards becoming the first local producer of spodumene in North America and ultimately moving downstream to capture even greater value‐add from our expanding lithium resource base,” he said.
Sayona has a market cap of $1.47 billion.
Chalice Mining (CHN) also announced a large raise — $100 million dollars to lock in an 18-month program of exploration and pre-development works, including at its Julimar nickel, copper and platinum group elements (PGE) project a short drive from Perth.
The placement to institutions and sophisticated investors boosts the company’s cash-at-hand to more than $140 million. Under the placement, the company issued shares at $6 — a 10 per cent discount to its previous market price.
Chalice has a market cap of $2.18 billion and shares have been trading around $6.22 at 1:24 pm AEST.
Meanwhile, monitored security company Intelligent Monitoring Group (IMB) today opens the retail component of its $10 million capital raising.
The raise — $8.2 million of which is underwritten — comes in the wake of the company acquiring security internet of things business Mammoth Technology Group for $4 million in a half cash, half scrip deal.
Managing Director Dennison Hambling said the company’s goal was to be a leader in security, with cameras acting as alarms.
“Whilst we are disappointed to be raising at the current share price levels, we feel that the addition of Mammoth to the business should improve the growth profile of the business over our three-year plan period, and, ultimately, its value is such that it still made sense to proceed,” Mr Hambling said.
“IMG has a business with a very strong — up to 95 per cent — recurring revenue base and will look to use the momentum from the AIS (Advanced Inland Security) and Mammoth acquisitions to continue to drive towards becoming Australia’s leading security and connected camera company.”
The retail entitlement closes on June 15, with shares priced at 15 cents. Shares were trading lower than that today at 14 cents as of 1:26 pm AEST. The company has a market cap of under $10 million.
Openpay (OPY) secured more than $18 million with 24-cent shares and it’s launching a share purchase plan for $2 million more.
Openpay will use the funds to acquire new merchants and customers in Australia and New Zealand and improve its platform.
Defence training and simulation products provider XReality Group (XRG) raised $1.26 million, and nickel and platinum group elements explorer Moho Resources (MOH) raised just under a million dollars.
Other ASX-listed companies to announce a capital raising this week include:
- Crowd Media (CM8)
- Living Cell Technologies (LCT)
- Predictive Discovery (PDI)
The details of those capital raises will be due early next week.
IPO News
Battery metals player Bellavista Resources (BVR) made its debut this week and its shares have since been trading about 25 per cent above its IPO price.
Battery metals will be Bellavista’s main focus, but uranium is also on the agenda of the company which has been backed by Capricorn Metals (CMM) Executive Chair Mark Clark and Bellevue Gold (BGL) Managing Director Steve Parsons, who each hold a 10 per cent stake in the newly-listed entity.
Bellavista will be chaired by company Director Mel Ashton, a Chartered Accountant who has chaired companies including Hawaiian Group, the Fremantle Dockers, Gryphon Minerals and the Royal Flying Doctor Service.
The Market Herald Deal Room spoke with Bellavista’s Executive Director, geologist Michael Wilson.
Demetallica (DRM) listed on the ASX yesterday and its shares are trading at 26.5 cents at 2:30 pm AEST.
Demetallica is looking for gold, copper and other base metals in the Cloncurry region of Queensland, and two drill rigs are operating on site.
The company also has tenement holdings in South Australia. DRM raised $15 million with 25-cent shares in its IPO.
Other companies to join the ASX this week were:
- TG Metals (TG6), which raised $6 million in its 20-cent IPO for its Lake Johnston nickel, gold and potentially lithium project in WA, and;
- The Lottery Corporation (TLC): a lottery operator and Keno product provider in all Australian states and territories except Western Australia
