ADN is in a trading halt ahead of a capital raise.
AFR Street Talk:
Industrial metals hopeful Andromeda Metals wants to start the new financial year cashed up and ready to fund pre-development at its Great White project in South Australia.
The copper/gold explorer turned halloysite-kaolin hopeful has kicked off a $45 million equity raising via stockbrokers Taylor Collison, Canaccord Genuity and Morgans.
The brokers were seeking buyers for 200 million new shares in a single tranche placement at 15¢ each to raise $30 million, and up to another $15 million in a share purchase plan.
The deal was priced at a 16.7 per cent discount to the last close and a 31.5 per cent discount to the 30-day VWAP, according to terms sent to investors.
Funds raised would be used for pre-development activities at the company’s Great White project, located about 600km from Adelaide, for completion of the Great White definitive feasibility study and more exploration.
The brokers were calling for bids into the placement by 3pm on Tuesday. Canaccord and Taylor Collison were named as joint lead managers, while Morgans was a co-manager.
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Ash here.
If ADN is raising $45m for the JV, MEP will need to tip $15m into the JV. Quite do-able.
Fun trading during JV partner's Trading Halt!
Ash
MEP Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
