Xanadu Mines Ltd (ASX:XAM) is offering a pro-rata non-renounceable rights issue to eligible shareholders, on the basis of one new share for every 10 shares held.
The company is aiming to raise about $3,369,829 at an issue price 5.2 cents per share.
The rights issue will be available to all registered shareholders who hold shares at 7.00 pm Sydney time on Friday, June 21 2019 (record date) with registered addresses in Australia, New Zealand and Singapore.
Xanadu’s directors intend to take up all or some of their entitlement in the rights issue.
The rights Issue is partially underwritten by Patersons Securities (who is also acting as lead manager) up to an amount of $1,750,000.
Funds raised from the rights Issue will be used to expand the current drilling program at the Kharmagtai project and for further exploration at the Red Mountain project.
Xanadu is in a prime position in southern Mongolia and boasts one of Asia’s largest undeveloped copper deposits, Kharmagtai, topped off by significant gold credits.
Being in the same region as Rio Tinto plc’s (LON:RIO) massive Oyu Tolgoi Copper-Gold Project and adjacent to the world’s biggest copper consumer China are sufficient reasons to make Xanadu a compelling story.