Expanded Placement and Share Subscription
Xanadu Mines Ltd (ASX:XAM, TSX:XAM), a prominent player in the mining industry, has officially announced an expansion of its recent placement initiative, initially detailed on 4 November 2024. The company has successfully increased the total funding from $5.5 million to $7.5 million, reflecting robust investor confidence and strategic partnerships, particularly with Zijin Mining Group Co., Ltd (Zijin).
The expanded placement encompasses an additional issuance of 36.5 million shares, priced uniformly at $0.055 each. This adjustment aims to enhance the company's financial strength and support ongoing projects and explorations.
Investor Participation and Details
The placement expansion includes two significant share subscription agreements. The first agreement introduces 10 million new shares acquired by a sophisticated Australian investor, enhancing domestic investment confidence. This portion of the placement is set to be finalized and allotted by 15 November 2024, under the company’s existing ASX Listing Rule 7.1 capacity.
The second and more substantial part of the expansion involves Zijin through its subsidiary, Jinping (Singapore) Mining Pte Ltd. This agreement, for 26.5 million shares, is contingent upon the approval of Xanadu’s shareholders and is subject to regulatory oversight by the Australia Foreign Investment Review Board (FIRB), with approvals already secured. An Extraordinary General Meeting is scheduled for December to facilitate this approval process.
Strategic Use of Raised Funds
The additional $2.0 million raised through this expanded placement is earmarked for several critical areas of development:
- Continued exploration and development of Xanadu’s Red Mountain Copper-Gold and Sant Tolgoi Nickel-Copper projects.
- Acquisition of new projects and further exploratory funding.
- Operational funding for the initial 2025 quarter of the Khuiten Joint Venture, ahead of a comprehensive feasibility study.
Market Impact and Share Pricing
This placement was conducted at a 14.1% discount based on the 31 October 2024 closing price of $0.064 per share, offering an attractive entry point for investors. The new shares will be treated on par with existing fully paid ordinary shares, ensuring equitable rights for new investors.
Executive Commentary
Colin Moorhead, Executive Chairman & Managing Director of Xanadu Mines, expressed his satisfaction with the placement's success, noting, "This upsized placement not only strengthens our financial base but also reaffirms Zijin’s commitment as our steadfast partner in growth."
Further Communications
Xanadu Mines has committed to promptly notifying investors of the forthcoming Extraordinary General Meeting date to finalize Zijin's participation. For additional information, interested parties are encouraged to contact either Colin Moorhead or Spencer Cole, CFO, at Xanadu Mines.
Regulatory and Legal Disclaimer
This announcement is intended for audiences outside of the United States and does not constitute an offer of securities in the United States or any other jurisdiction.
