Deals this week: Lanka Graphite, European Metals Holdings, Jameson Resources
Australian mining company Lanka Graphite has announced its decision to raise A$1.42m ($1.08m) through unsecured convertible notes, carrying 10% interest a year and due for public offering in 2017.
The notes can be optionally converted into the company’s shares at a price of A$0.12 ($0.09) a share. The company intends to use proceeds from the offering for working capital purposes.
European Metals Holdings Limited will issue five million ordinary shares in a private placement to Rare Earth Minerals Plc to raise A$2.6m ($1.99m) that will be spent to develop the former’s Cinovec Project, perform a preliminary feasibility study, and arrange additional working capital.
Based in Australia, European Metals is a mineral exploration and development company, while Rare Earth Minerals is a UK investment company.
The placement price has been fixed at A$0.52 ($0.39) a share, the closing price of the company’s share on 30 September 2016, representing a premium over the five-day and ten-day volume weighted average prices of the company’s shares.
Australia-based Jameson Resources Limited plans to raise A$1m ($0.76m) towards its working capital and general corporate purposes.
The amount will be raised through private placement of 14,285,714 ordinary shares at a price of A$0.07 ($0.05) each.
Chibougamau Independent Mines Inc has reached an agreement to sell its interest in the Mont Sorcier Vanadium-Iron-Titanium project to the Vendome Resources Corp in a transaction valued at C$0.94m ($0.75m), which will be paid in cash and shares issue.
Both companies are based in Canada and deal in mineral exploration.
Chibougamau Independent Mines will continue to earn 2% gross metal royalty on all mineral production from the asset following closure of the deal.