Ampella Mining (ASX:AMX) has raised $41.925 million before costs through the placement of 21.5 million ordinary shares at $1.95, an 8% discount to the last closing price of $2.11.
The Ampella share price has spiked on the resumption of trading to an intra-day high of $2.45, a 26% premium to the subscription price.
The placement to institutional investors closed several times oversubscribed.
The funds, which will add to the approximately $12 million already held by Ampella, will be used to accelerate exploration programs at its Batie West Project in Burkina, and general working capital.
Ampella currently has three rigs on site and is awaiting a fourth to arrive shortly in the lead up to the resource upgrade at its Konkera deposit in early 2011.
The capital raising consisted of 3 parts:
- 12.5 million share Private Placement to North American and European based institutions;
- 7.5 million share Private Placement to Australian institutions; and
- 1.5 million share fully underwritten Share Purchase Plan to existing shareholders.
The North American and European component of the Private Placements was managed by a syndicate of agents led by CIBC World Markets and included Cormark Securities, Paradigm Capital and Fairfax IS.
Patersons Securities was the lead manager for the Australian Private Placement and is also the Underwriter of the Share Purchase Plan.
Funds from the Placements will be received by 22 September 2010 with shares to be issued shortly thereafter.