Xanadu Mines Ltd (
ASX:XAM,
TSX:XAM) (
Xanadu or the
Company) is pleased to announce the Company has
received commitments for a placement to eligible professional and
sophisticated investors of 78,181,818 fully-paid ordinary shares in
Xanadu (
New Shares) at an issue price of $0.055
each to raise A$4,299,999.99 (before costs)
(
Placement). The Placement will complete in two
tranches. The first tranche, being the issue of 62,996,490 New
Shares, is unconditional and will be issued pursuant to the
Company’s existing placement capacity under ASX Listing Rule 7.1
(
First Tranche). The second tranche, being the
proposed subscription of 15,185,328 New Shares by Xanadu’s major
shareholder Zijin Mining Group Co., Ltd (
Zijin),1
is subject to formal documentation and a number of conditions set
out below (
Second Tranche).
Highlights
-
Firm commitments received for a Placement to raise A$4.3
million (before costs).
-
Supported by both domestic and international
institutions.
-
Includes participation by Zijin on a proportionate basis
(A$0.8 million), subject to Australia Foreign Investment Review
Board (FIRB) and Xanadu shareholder approval.
-
Xanadu Extraordinary General Meeting to be scheduled in
late January to seek approval of Zijin participation.
The proceeds of the Placement, together with the
Company’s existing cash reserves of A$4.7m2, enables Xanadu to
execute on its Horizon 2 and Horizon 3 strategy, including
exploration at the Red Mountain Copper-Gold Project, new project
acquisition and exploration, and working capital.
The issue price of $0.055 per New Share represents
an 19.1% discount to Xanadu’s last close (15 November 2023) of
$0.068 per share, and a discount of 19.9% to the 5-day VWAP of
$0.069 per share.
All New Shares will rank pari-passu with the
existing fully paid ordinary shares currently on issue. The issue
of the Second Tranche New Shares to Zijin is conditional on Xanadu
shareholder approval under ASX Listing Rule 10.11, completion of
the First Tranche and FIRB approval (Zijin
Conditions).
The Placement of the First Tranche New Shares is
scheduled to settle on Thursday, 23 November 2023 with allotment
and trading scheduled to occur on Friday, 24 November 2023.
Placement of the Second Tranche New Shares will occur 10 business
days after the last of the Zijin Conditions are satisfied.
Bell Potter Securities Limited acted as Lead
Manager and Ord Minnett acted as Co-Manager to the Placement.
Executive Chairman & Managing
Director, Colin Moorhead, said, “We are pleased with the
support for this Placement. This provides capital to pursue our
strategies, as we seek a new discovery at Red Mountain and expand
our portfolio into new critical mineral projects in Mongolia. We
will notify the market shortly of a date for our Extraordinary
Meeting to approve Zijin’s share of this placement. I look forward
to updating the market with progress on our Exploration Projects as
well as continued news flow from our ongoing Pre-Feasibility Study
and Discovery Exploration at Kharmagtai.”
For further information, please contact:
Colin
Moorhead |
Spencer
Cole |
Executive Chair & Managing
Director |
Chief Financial Officer |
P: +61 2 8280 7497 |
P: +61 2 8280 7497 |
E: colin.moorhead@xanadumines.com |
E: spencer.cole@xanadumines.com |
W: www.xanadumines.com |
|
|
|
This Announcement was authorised for release by
Xanadu’s Board of Directors.
All dollar amounts are in Australian dollars
unless otherwise indicated.
Not an offer in the United
StatesThis announcement has been prepared for publication
in Australia and may not be released to US wire services or
distributed in the United States. This announcement does not
constitute an offer to sell, or a solicitation of an offer to buy,
securities in the United States or any other jurisdiction. Any
securities described in this announcement have not been, and will
not be, registered under the US Securities Act of 1933 and may not
be offered or sold in the United States except in transactions
exempt from, or not subject to, the registration requirements of
the US Securities Act and applicable US state securities laws.
_________________________1 Zijin’s participation is through its
indirect wholly owned subsidiary Jinping (Singapore) Mining Pte.
Ltd. 2 As at 30 September 2023
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