Tungsten Mining reports an AU$47 million capital raising to help further the exploration of its Mt Mulgine tungsten project in western Australia.
Tungsten Mining (ASX:TGN) advises that further to its announcement on 16 April 2018 the proposed placement has been significantly oversubscribed and the company has agreed to accept oversubscriptions.
Tungsten reports having firm commitments for a placement to sophisticated and institutional investors to raise approximately AU$47 million. The placement will be made in two tranches, with the first tranche of some 63,416,902 shares and 12,512,380 attaching options to be made utilizing the company’s placement capacity in accordance with ASX Listing Rule 7.1.
As quoted in the press release:
The second tranche will be completed subject to shareholder approval at an upcoming General Meeting to be held in June 2018.
The placement of approximately 138,235,293 shares will be issued to sophisticated and institutional investors at an issue price of AU$0.34 per fully paid ordinary share. For every five new shares subscribed applicants will receive one attaching option (approximately 27,647,059 options in total). The options will be unlisted and are exercisable by payment of AU$0.60 on or before 31 December 2019.
Use of Funds
raised by the first tranche will be used to advance development activities at the Company’s Mt Mulgine Tungsten Project, in particular to advance (fast track) studies related to large scale mining and processing operations at Mt Mulgine, and for general working capital purposes. The additional funds will allow the company, subject to receiving shareholder approval, to accelerate concurrent work at Mt Mulgine; deploy additional resources; as announced with the recent agreement to acquire the Watershed tungsten project (ASX 2 May 2018); and take advantage of other acquisition opportunities as they arise.