Jadar Resources Ltd (ASX:JDR) has received firm commitments from sophisticated and institutional investors to raise $3.5 million through a placement of 116.7 million ordinary shares at $0.03 per share.
The company will also issue a free option, at an exercise price of $0.045 and an expiry date of August 31, 2024, with every two new placement shares.
This placement will provide additional funding to supplement the existing finance facilities and ensures that Jadar is well funded for its Australian tin projects moving forward.
Acquiring projects
The company recently signed a term sheet with Outback Metals Pty Ltd to purchase a portfolio of Northern Territory projects collectively referred to as the Mt Wells and Maranboy projects containing a number of tin, copper, silver, gold, tungsten and iron-manganese prospects.
Total consideration for the acquisition of the Mt Wells and Maranboy projects is A$6.5 million in cash, payable over 12 months and 20 million options.
Jadar is likely to partly fund the acquisition through a $3 million convertible note and the use of the Mint Capital Advisors finance facility.
Mt Wells and Maranboy
Mt Wells Project is about 200 kilometres southeast of Darwin and 37 kilometres northeast of Pine Creek and is accessible by all-weather maintained roads from the Stuart Highway.
Telephone services are installed at the site and a gas pipeline, powerline and train line are within 5 kilometres.
The Mt Wells and Maranboy projects comprise 32 granted mining leases, one mining lease application, two granted exploration licences and one exploration licence application.
The acquisition includes 107 acres of freehold land underlying the processing plant, buildings, and other infrastructure.
The company plans to quickly evaluate and convert the current known non-JORC compliant resources at Mt Wells into JORC-compliant resources to enable the tin-copper project to be brought back into production to capitalise on current commodity prices and further expand the project’s development and exploration.
Maranboy is about 380 kilometres southeast of Darwin and is accessed via the Central Arnhem Road which intersects with the Stuart Highway.
“Well-positioned to progress acquisitions”
Jadar Resources’ executive director Adrian Paul said: “With the additional capital raised via this placement we are extremely well-positioned to progress with our acquisitions of both the Mt Wells and Khartoum tin projects.
“I would like to take this opportunity to welcome our new shareholders to the register and thank our existing shareholders for their continued support.”
Placement details
The company plans to issue new shares and new options in two tranches in accordance with the company’s available capacity in accordance with ASX Listing Rules7.1 and 7.1A.
Under the listing rules 7.1 and 7.1A, the company is not required to obtain shareholder’s approval for issuing new shares.
In the first tranche, the company plans to issue 58.33 million new shares in line with the company’s existing placement capacity under Listing Rule 7.1A and 29.16 million new options under the company’s existing placement capacity under Listing Rule 7.1.
In the second tranche, the remaining 58.33 million new shares and 29.16 new options will be issued subject to shareholder approval, which will be sought at a general meeting scheduled to be held on October 24, 2021.