Gold plated placements
Allied Gold and Focus Minerals have both managed to pull off private placements with investors rushing to buy a slice of the gold miners.
There has been plenty of corporate activity at the junior and mid end of the resources spectrum, but two new deals stick out among the various capital raisings, MOUs and private placements, with relatively large raisings for gold miners Allied Gold and Focus Minerals.
Allied has raised $30.75 million after the oversubscribed placement of 61.5 million shares at 50 cents a share, representing approximately 15 per cent of the company's shares on issue prior to the placement.
Allied chief financial officer Frank Terranova told Business Spectator that subscribers included current institutional shareholders M&G Investment Management, Legal & General, Fidelity Investments and LA-based mutual fund manager The Capital Group. He added that two new gold funds subscribed as well, but these could not be named. He divulged only that one was based in the northern hemisphere, and one in the southern.
The placement was largely conducted internally, Terranova said, with the assistance of former Macquarie banker John Knights from Evans and Partners in Melbourne and Mirabaud Securities in London.
Allied said the issue would help the company retire debt from its original Simberi project financing and fast track an oxide plant optimisation. The Simberi project is located on the northernmost island of the Tabar Islands in Papua New Guinea, some 60 kilometres northwest of Lihir's project. Simberi hosts measured, indicated and inferred gold resources of approximately 3.3 million ounces.
Focus Minerals, an emerging gold and nickel producer operating south of Kalgoorlie, has meanwhile announced a $28 million capital raising via the issue of 1.25 billion shares at 2 cents each plus a share purchase plan to raise $3 million. The raising coincides with the appointment of chief operating officer Campbell Baird as chief executive.
Adam Rankine-Wilson from Azure Capital has been appointed as advisor and lead manager to the issue, while Patersons Securities will act as broker to the capital raising. Rankine-Wilson, the former managing director of Grange Resources, founded Capital Investment Partners prior to brining his practice to Azure.
Focus non-executive director Christopher Hendricks is also an associate director of the Perth-based Azure, while Focus chairman Donald Taig used to be a director of Tolhurst Noall, recently brought into the growing Patersons stockbroking empire.
A Focus spokesman told Business Spectator that the names of institutions investing in Focus could not be disclosed, but a number of high-net worth German gold bugs are believed to be interested in the issue.
Focus plans to allocate $18 million to refurbish and modernise its Three Mile Hill treatment facility and use the balance of funds to find and develop as many nearby gold projects as it can, taking advantage of high market prices. Current managing director Peter Williams will step down to focus on managing the Three Mile Hill project.
Allied has raised $30.75 million after the oversubscribed placement of 61.5 million shares at 50 cents a share, representing approximately 15 per cent of the company's shares on issue prior to the placement.
Allied chief financial officer Frank Terranova told Business Spectator that subscribers included current institutional shareholders M&G Investment Management, Legal & General, Fidelity Investments and LA-based mutual fund manager The Capital Group. He added that two new gold funds subscribed as well, but these could not be named. He divulged only that one was based in the northern hemisphere, and one in the southern.
The placement was largely conducted internally, Terranova said, with the assistance of former Macquarie banker John Knights from Evans and Partners in Melbourne and Mirabaud Securities in London.
Allied said the issue would help the company retire debt from its original Simberi project financing and fast track an oxide plant optimisation. The Simberi project is located on the northernmost island of the Tabar Islands in Papua New Guinea, some 60 kilometres northwest of Lihir's project. Simberi hosts measured, indicated and inferred gold resources of approximately 3.3 million ounces.
Focus Minerals, an emerging gold and nickel producer operating south of Kalgoorlie, has meanwhile announced a $28 million capital raising via the issue of 1.25 billion shares at 2 cents each plus a share purchase plan to raise $3 million. The raising coincides with the appointment of chief operating officer Campbell Baird as chief executive.
Adam Rankine-Wilson from Azure Capital has been appointed as advisor and lead manager to the issue, while Patersons Securities will act as broker to the capital raising. Rankine-Wilson, the former managing director of Grange Resources, founded Capital Investment Partners prior to brining his practice to Azure.
Focus non-executive director Christopher Hendricks is also an associate director of the Perth-based Azure, while Focus chairman Donald Taig used to be a director of Tolhurst Noall, recently brought into the growing Patersons stockbroking empire.
A Focus spokesman told Business Spectator that the names of institutions investing in Focus could not be disclosed, but a number of high-net worth German gold bugs are believed to be interested in the issue.
Focus plans to allocate $18 million to refurbish and modernise its Three Mile Hill treatment facility and use the balance of funds to find and develop as many nearby gold projects as it can, taking advantage of high market prices. Current managing director Peter Williams will step down to focus on managing the Three Mile Hill project.
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