Deals this week: Harmony Gold Mining Company, MGX Minerals, Nusantara Resources

8 June 2018 (Last Updated July 27th, 2018 07:32)

South African gold exploration and mining company Harmony Gold Mining has raised R1.05bn ($83.01m) by issuing 55.05 million shares priced at R19.12 ($1.5) a share as part of a private placement.

South African gold exploration and mining company Harmony Gold Mining has raised R1.05bn ($83.01m) by issuing 55.05 million shares priced at R19.12 ($1.5) a share as part of a private placement.

The issued shares represent 15% of the company’s total share capital.

South Africa-based mining firm African Rainbow Minerals has subscribed for approximately 11.03 million shares under the placement scheme, thereby retaining its 14.29% stake in the company.

The company has engaged JP Morgan Securities and the London branch of UBS AG as its joint global co-ordinators and joint book-runners, while Nedbank Limited and Absa Bank Limited were enlisted as joint book-runners for the transaction.

Harmony Gold has engaged Bowman Gilfillan and Hogan Lovells International as legal advisors in support of the deal, while Davis Polk & Wardwell London provided legal advisory services to the joint global co-ordinators and joint book-runners.

MGX Minerals has agreed to raise C$12m ($9.27m) in a non-brokered private placement of flow through (FT) and non-flow through (NFT) units.

“GFG Resources has signed a purchase and sale agreement with Richmont Mines to acquire the complete stake in the Sewell Property for approximately C$0.1m ($0.07m).”

The placement will include the issuance of 4.35 million FT units priced at C$1.15 ($0.88) a unit to raise C$5m ($3.86m), as well as 6.37 million NFT units priced at C$1.1 ($0.85) a unit to raise C$7m ($5.41m).

Each FT unit will include one common share and one-half of a common share purchase warrant, which would entitle the holder of a full FT warrant to acquire an additional common share.

MGX Minerals’ financial advisor for the transaction, EMD Financial, is expected to receive a finder’s fee, as well as common shares of approximately 4% of the total number of NFT units and FT units sold.

In addition, EMD Financial will receive compensation options and corporate finance fee of C$0.05m ($0.03m).

Canada-based MGX Minerals is engaged in developing lithium, magnesium, and silicon projects.

Nusantara Resources has agreed to issue 25.66 million shares priced at A$0.2 ($0.15) a share to raise a sum of A$5.1m ($3.89m) as part of a non-renounceable rights offering.

Each shareholder is entitled to receive five shares for every 19 shares held under the initiative, while a subscription for two shares will earn them an attaching option that will be exercisable at A$0.30 ($0.22) on or before 31 July 2021.

Nusantara Resources is an explorer and developer of gold resources based in Australia.

The company has engaged Patersons Securities as its lead manager and underwriter for the transaction.

South32, through its subsidiary, has entered a 70:30 joint venture (JV) agreement with Silver Bull Resources for the development of the Sierra Mojada zinc-silver project in Mexico.

South32 will provide a sum of $10m as minimum exploration funding for the project during a four-year option period under the arrangement.

Australia-based South32 is a mining and metals company, while Silver Bull Resources is a mineral exploration firm based in Canada.

Cruz Cobalt has signed a letter of intent (LoI) with EMX Royalty Corp and the Fennoscandian Investment Group for the acquisition of two cobalt-nickel-copper projects in Norway.

Canada-based Cruz Cobalt is engaged in the exploration of cobalt and lithium.

EMX Royalty, also based in Canada, is focused on the exploration of gold, copper, polymetallic, geothermal and base metals, while Fennoscandian Resources is a graphite exploration company based in Finland.

GFG Resources has signed a purchase and sale agreement with Richmont Mines to acquire the complete stake in the Sewell Property for approximately C$0.1m ($0.07m).

GFG will issue 390,930 common shares to Richmont Mines in exchange for the property under the arrangement.

Richmont is also set to receive an additional 500,000 common shares in GFG following the filing of an independent NI 43-101 technical report within five years from the closure of the agreement.

The additional transfer of shares will be dependent on confirmation of the availability of mineral resources of at least 500,000 ounces (oz) of gold at the property.

Canada-based GFG Resources is engaged in gold exploration, while Richmont Mines, also based in Canada, is a subsidiary of Canadian mineral exploration company Alamos Gold.

Richmont Mines is primarily engaged in the mining, exploration and development of gold properties.