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Xanadu Mines raises $2.1 million to progress Mongolian copper-gold project

The flagship project is the Kharmagtai Copper-Gold Project in Mongolia's South Gobi region, near the world-class Oyu Tolgoi project.
Xanadu Mines raises $2.1 million to progress Mongolian copper-gold project
Xanadu reserved the right to place any of the remaining shortfall shares at or greater than the rights issue price of 5.2 cents per share

Xanadu Mines Ltd (ASX:XAM) has closed a non-renounceable rights issue made to shareholders, raising more than $2.1 million to progress its flagship copper-gold project in Mongolia.

Acceptances of entitlements under the rights issue have been received for a total of 40,393,314 new shares, which gives rise to a shortfall in excess of $1.269 million.

The offer was partially underwritten to $1.75 million by Patersons Securities Limited who also acted as lead manager.

READ: Xanadu Mines’ significant shareholders committed to $3.37 million rights issue

Xanadu chief executive officer Andrew Stewart said: “I would like to thank all shareholders who participated in this rights issue which will enable the company to progress its flagship Kharmagtai Copper-Gold Project.

“We are grateful for the continued strong support of our major shareholders and Patersons underwriting commitment for the rights issue is particularly appreciated.”

READ: Xanadu Mines has a tier-1 copper asset with gold bonus: Hunter Capital Advisors

The lead manager and the directors of Xanadu have reserved the right to place any of the remaining shortfall shares at or greater than the rights issue price of 5.2 cents per share.

Xanadu Mines is in a prime position in southern Mongolia and boasts one of Asia’s largest undeveloped copper deposits, Kharmagtai topped off by substantial gold credits.

The Kharmagtai project has an open cut resource estimate of 598 million tonnes containing 1.9 million tonnes of copper and 4.3 million ounces of gold.

Within this is a shallow open pittable high-grade resource of 54 million tonnes at 0.86% copper equivalent for 317,000 tonnes of copper and 1.13 million ounces of gold.

Hunter Capital Advisors has initiated coverage on Xanadu with a speculative buy recommendation and a price target of 45 cents.

In a report on the company, Hunter Capital said Xanadu could reach a market value in the order of $375 million.

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