More cash in the kitty for ASX juniors Gateway Mining and Bass Metals
ASX-listed junior explorers are continuing to raise much-needed money for their projects and acquisition opportunities.
Gold explorer Gateway Mining (ASX:GML) has secured up to $10 million in funding for its transition into a coal play.
The Sydney-based company has its eyes set on Queensland Coal Investment Holdings — which will require $25 million.
Gateway says it’s entered a convertible note and share subscription agreement with Baker Steel Resources Trust (BSRT) for $8 million to $10 million.
BSRT is a specialist natural resource investment company listed on the London Stock Exchange managed by Baker Steel Capital Managers.
“In the opinion of the Board, the transaction has the potential for tremendous shareholder wealth creation as the new coal projects move towards development,” said Gateway chairman Trent Franklin.
The deal remains subject to several conditions including the raising of a minimum $15 million under a public offer of shares.
Shares in Gateway were trading unchanged at 1.9c on Friday.
Meanwhile, Bass Metals (ASX:BSM) has successfully completed the first stage of a $6 million equity raising, securing about $3.8 million from the placement of 273 million shares to institutional, professional and sophisticated investors.
The retail entitlement offer of around 154 million shares to raise $1.7 million, underwritten by Bizzell Capital Partners and Morgans Corporate, opens on September 27.
Proceeds will be used to pay for the acquisition of the Graphmada mine, exploration of graphite and lithium prospects and for working capital.
Shares in Bass were trading 12 per cent lower at 1.4c on Friday.