Legend Mining Limited (ASX:LEG) has received strong support from existing major shareholders, institutional and sophisticated investors for a $20 million placement, including from largest shareholders Creasy Group and IGO Ltd (ASX:IGO) (OTCMKTS:IPGDF).
The company has received binding commitments for the placement at 14 cents per share.
Funds raised will be applied to progress Legend’s exploration at its Rockford Project in the Fraser Range, and particularly at Mawson prospect where highly encouraging results have seen increased focus.
“Delighted with support”
Legend Mining managing director Mark Wilson said: “We are delighted with the support we have received for this placement.
“The recent success we have had at Mawson has resulted in an increased expenditure over and above our current budget.
“This raising will enable that level of activity to continue at pace.”
$27 million in cash
Legend will have approximately $27 million in cash at bank on completion of the placement as it continues to focus its efforts at Mawson.
The successes at Mawson have attracted plenty of attention which has resulted in share prices increasing from 5.3 cents on March 19 to 21.5 cents on April 22 and today they have been as much as 10% up in early trade to 16.5 cents.
Euroz Securities Limited acted as sole lead manager to the placement with Canaccord Genuity
(Australia) Limited as co-manager.
The placement was cornerstoned by Creasy Group and IGO Ltd, which are Legend’s two largest shareholders and have significant Fraser Range, interests including IGO’s Nova nickel-copper-cobalt mine.
The placement is being made to investors qualifying under Section 708 of the Corporations Act and Legend will use its existing 15% capacity under ASX Listing Rule 7.1.
Legend expects to complete the issue of the 142,857,143 placement shares by June 11, 2020.
As well as progressing exploration, funds will also be used for general working capital.