- Junior copper-gold explorer Xanadu Mines (XAM) is set to raise just over $1 million through a 3.3 cent share placement
- The company will be placing 34 million new shares on issue to raise the funds
- Xanadu says the funds will be used to keep exploring its Kharmagtai project in Mongolia
- Specifically, the money will help fund a diamond drilling program and a deep penetrating geophysical program
- CEO Andrew Stewart says Kharmagtai has the potential to become a world-class project
- Shares in Xanadu traded flat today, closing grey and worth 3.8 cents each
Junior copper-gold explorer Xanadu Mines (XAM) has successfully tapped investors for $1.12 million to keep exploring at its Kharmagtai project in Mongolia.
The company told shareholders today it has received firm commitments for a placement of 34 million new shares priced at 3.3 cents a pop.
The placement price represents a 13 per cent discount to Xanadu’s last closing price of 3.8 cents each.
The new cash will be used to fund a diamond drilling program in the Kharmagtai project area as well as a deep penetrating geophysical program which will target large-scale copper-gold deposits.
Xanadu said once the placement is complete, it will have $3.1 million cash on hand to spend at the Mongolian asset.
Xanadu CEO Dr Andrew Stewart said the company is gearing up to accelerate its exploration and development work at what could become a “world-class” project.
“We look forward to advancing our exciting projects and to releasing more exploration results from Kharmagtai and Red Mountain in the coming weeks,” Andrew said.
“Discussions with existing shareholders revealed significant investor demand that was reflected in this capital raising,” he added.
The Red Mountain copper-gold project is adjacent to Kharmagtai in Southern Mongolia. Xanadu also owns the Yellow Mountain project in northern Mongolia.
The company has 791.17 million total shares on issue, which means today’s placement dilutes shares by a marginal 4.3 per cent.
Interestingly, shares in Xanadu traded flat today, closing grey and worth 3.8 cents each. The company has a market capitalisation of $30.06 million.