Xanadu Mines Ltd. has embarked on a significant fundraising venture, announcing a two-phase share placement aimed at generating A$4.3 million. The first phase of the placement has already commenced today with the issuance of approximately 63 million new shares priced at A$0.055 each. This initial tranche is unconditional as per ASX Listing Rule 7.1.
The second phase of the share sale is contingent upon shareholder approval and will involve major shareholder Zijin Mining Group's commitment to subscribe for an additional 15 million shares, subject to terms and regulatory approvals. The completion of this tranche is expected to provide funding for Xanadu's exploration activities at the Red Mountain project and support a Pre-Feasibility Study at Kharmagtai, among other corporate initiatives.
Trading of the newly issued shares from the first phase is set to begin on Friday, with the initial allotment of shares being completed by Thursday. The company has also outlined plans for an Extraordinary General Meeting in late January to discuss and vote on Zijin Mining Group's participation in the second tranche of the share subscription.
The capital raised from this placement will bolster Xanadu's Horizon strategy, which includes probing the Red Mountain Copper-Gold Project and pursuing new acquisitions. The company currently maintains a financial buffer of A$4.7 million to aid these endeavors.
Managed by Bell Potter Securities Limited and Ord Minnett, this strategic financial move is considered crucial by Xanadu's management for achieving their objectives. Colin Moorhead has expressed optimism regarding the exploration potential at Red Mountain and anticipates positive developments from the Kharmagtai Pre-Feasibility Study.
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