fyi article on placement

in case anyone missed it (i did haha)


Golden hopes underpin Apex's $62m
Email Print Normal font Large font AdvertisementKate Emery, Perth
March 20, 2008

A RECORD gold price and expectations of further gains for the precious metal have helped Apex Minerals overcome tough market conditions and raise $62 million for its flagship Wiluna project.

In the latest sign investors are punting on a big year for gold, the 73 million Apex share placement was completed at 85¢ a share, a discount of only 11% to the miner's last trading price.

By comparison, the tight credit environment has seen other companies struggle to raise funds, with heavy price discounts of 20%-plus. Apex's shares, resuming after suspension, fell 5.5¢ to 90.5¢.

The placement, arranged by Goldman Sachs JBWere and Southern Cross Equities, represents about 23% of Apex's pre-raising market capitalisation.

Apex's success comes amid record gold prices above $US1000 an ounce and predictions gold could top $US1400 this year on the back of global market uncertainty, soaring oil prices and a weak US dollar.

The soaring price has reignited interest in goldminers, with shares in Australia's biggest goldminer, Newcrest Mining, hitting a record above $40 this month.

By contrast, other market sectors have copped the brunt of nervous investors worried that the US economic crisis could be worsening. Only this week the Perth-based Burrup Fertilisers pulled its $3 billion float, citing market volatility.

Apex chief executive Mark Ashley admitted to some anxiety about pulling off the ambitious capital raising in rocky equity market conditions.

"The timing wasn't the best for equity markets but it was good for gold," Mr Ashley said.

"Internationally, what's happening in America is going to get worse and that will have an effect on the gold price. That's why we wanted to do this now - so we can benefit from it instead of being hindered by it."

The funds will go towards Apex's plan to resume production at the Wiluna goldmine, where it is targeting eventual production of 200,000 ounces a year by the end of the year. It also wants to fund an an exploration and drilling program. The bullish outlook for gold has also prompted WA group Monarch Gold to unveil plans to raise up to $13.4 million to develop projects.

Monarch was last month forced to slash a planned $25 million capital raising to $10 million, at a heavily discounted price. Monarch chairman Michael Kiernan, who has tipped gold will rise to $US2000 by next year, yesterday said Monarch was on track to fund its $65 million purchase of the Mount Magnet gold operations and to increase production at its Davyhurst project.

Gold stocks eased yesterday as profit-taking set in following recent gains and a weaker gold price, which slipped $US10 to $US990.80 an ounce in Sydney trading. Monarch was unchanged at 47¢ and Newcrest lost $1.49 to $36.

WEST AUSTRALIAN