Apex Minerals has announced that it has raised $14 million through a share placement to institutional and sophisticated investors at 20 cents per share, and has resolved to raise a further $14 million through a rights issue at 20 cents.
Azure Capital has been appointed as Lead Manager of the capital raising.
The Rights Issue has been fully underwritten by Azure Capital.
The proceeds of the capital raising will be used to meet the Company’s financial obligations stemming from the slower than expected ramp up of gold production in the March 2009 Quarter at its Wiluna Gold Operations.
Apex managing director Mark Ashley said with that issue now resolved and the fresh funds raised, the Company will be well placed to take advantage of its improved operational performance and the significant exploration potential at the Wiluna Project.
“We are pleased with the response to the share placement which reflected investors’ ongoing support for the Company,” Ashley said.
He said that, as previously reported to the ASX, Apex had mined and processed fewer high-grade tonnes from underground than originally expected (due to slot rise issues) during the March Quarter, leading to substantially lower gold sales. However, modified drilling and blasting techniques have subsequently overcome this issue, with the Company achieving its initial annualised production target of 120,000 ounces in April.
“This capital raising puts us back where we expected to be had we not experienced the previously announced slower production ramp up. The proceeds will ensure Apex can implement its production growth strategy and capitalise on its significant exploration potential at Wiluna,” Ashley said.
Apex has agreed to place approximately 69.5 million ordinary shares to institutional and sophisticated investors at a price of 20 cents per share to raise approximately $14 million before issue costs.