Vancouver – Despite the recent bearish trend in mining indices, financings continue to abound with companies still finding significant capital looking for a home in the mineral exploration sector.
Investment market sentiment is exemplified by a sample of several substantial financing arrangements over a recent one day trading session.
Aurora Energy Resources (AXU-T, AUEGF-O) recently closed a $112-million bought deal financing comprised of just over six million shares at $16.00 apiece plus 750,000 flow-through shares at $20.50 each. Funds are earmarked for ongoing exploration at its Michelin and Jacques Lake uranium deposits in Labradors Central Mineral Belt.
North American Palladium (PDL-T, PAL-X) has filed a preliminary prospectus in Canada and the U.S. looking to raise US$100 million through a unit offering (comprised of a share and a half-warrant).
The primary palladium producer will use the funds to develop the High Grade Offset zone at its Lac des Iles mine just north of Thunder Bay, Ontario, and to advance its Shebandowan West project in northwestern Ontario and its Arctic platinum project in Finland.
Platmin (PPN-T, PPN-L) has queued up an underwritten deal to sell 9.5 million shares at $8.50 apiece for gross proceeds of $80.75 million. The dollars will be used to advance development at its Pilanesberg PGM project, in the western limb of the Bushveld complex in South Africa, which is expected to commence production in early 2009.
Buoyed by recent exploration successes at its Hercules gold project in northwestern Ontario’s Beardmore-Geraldton greenstone belt, Kodiak Exploration (KXL-V, KXLAF-O) closed a $54-million bought deal financing. It sold just under 2.5-million flow-through shares at $4.80 apiece and over 11-million non-flow-through shares at $3.80 each. Besides ongoing work at Hercules, the company plans to allocate some of the funds to new acquisitions.
Silver by-product purchaser Silverstone Resources (SST-V, SVRCF-O) recently recharged its treasury after closing a $50-million underwritten financing. It sold 17.25 million shares at $2.90 each with funds going to repay debt and potential acquisitions of additional silver production.
Mexican-focused explorer Mag Silver (MAG-T, MVG-X) raised $46.5 million in a bought deal financing through a syndicate of underwriters – selling 3 million shares at $15.50 each.
Proceeds from Mags private placement are earmarked for further exploration on its Juanicipio joint venture with Industrias Peoles (IPOAF-O) in Zacatecas State and its other Mexican Silver Belt projects.