Resources companies continue to rattle the tin
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While a recent survey of Australian mineral explorers by the Association of Mining and Exploration Companies has found that many juniors had been unable to attract private investment, resources companies are still turning to markets for funding.
The resources sector is still leading the market by the number of raises in the last two months, which indicates that there is still some investor interest.
Predictive Discovery (ASX:PDI) is looking to raise $2.12m through an entitlement offer of shares to eligible shareholders.
The company is offering one new share priced at 5c each for every 15 shares held to undertake a large exploration project at its Kaninko gold project in Guinea.
Last month, shares in the company jumped from 0.7c to 7c after initial drilling returned numerous shallow, thick, and high-grade gold intercepts like 10m at 26.52 grams per tonne (g/t) gold.
The 50km, three-rig drilling program will be aimed at defining a maiden resource by mid 2021.
Meanwhile, St George Mining (ASX:SGQ) is looking to raise $1.6m through a share purchase plan (SPP) for existing shareholders that will add to the $3.6m it raised through a heavily oversubscribed placement earlier this month.
The SPP is priced at 8c per share and will support exploration programs at its Mt Alexander nickel-copper sulphide project near Leonora, Western Australia.
Recent geophysical surveying has identified new targets for the company’s upcoming drill program at Mt Alexander.
Other companies have already closed their capital raising efforts with some success. Classic Minerals (ASX:CLZ) raised $806,000 through a heavily oversubscribed placement of shares priced at 0.1c to institutional and sophisticated investors.
Proceeds from the placement will be used to progress upcoming drilling at its Kat Gap and Forrestania gold projects.
In April, Classic defined a maiden resource of 93,000 ounces at the Kat Gap deposit.
Scoping studies, metallurgical testwork and optimisation work on possible open pit scenarios are currently underway to determine the potential for near-term mining operations.
While not a miner, gas producer Sacgasco Limited (ASX:SGC) has raised $400,500 through a convertible note issue to carry out workovers of its existing conventional wells in California.
The workovers are aimed at increasing gas flows and revenue from its existing wells.