PERTH (miningweekly.com) – ASX-listed junior Elementos will raise up to A$2-million through a share placement and nonrenounceable rights issue to fund work at the Cleveland tin, copper and tungsten project, in Tasmania.
Fellow-listed Jervois Mining on Thursday revealed that it would invest some A$480 000 in Elementos in return for 80-million shares and a further 80-million options, which could give the company a 10.3% stake in Elementos if fully exercised.
Elementos will raise a total A$600 000 through the private placement to Jervois and other sophisticated investors, with a further A$1.4-million to be raised through a nonrenounceable rights issue.
Some 100-million shares will be issued at 0.6c each under the placement, with a further 100-million attaching options exercisable at 0.6c each by June 2018.
Under the rights issue, shareholders could subscribe for one new share for every four shares held at an issue price of 0.6c each. Shareholders will also be issued one attaching option for each share applied for, with an exercise price and expiration date similar to the placement options.
“We are very pleased to be progressing with this capital raising and to welcome Jervois as a shareholder,” said Elementos chairperson Andy Greig.
“The Jervois board has many years of experience in successfully investing in and developing resource projects through to production. The Elementos team is looking forward to progressing the development of the Cleveland project now that funding has been secured.”
Funds raised in the placement and rights issue will be used to complete drilling and metallurgical testing at the Cleveland operation, as well as for debt reduction and working capital.