Capital Raises Weekly Wrap - 08/10/2021

The past week in capital raising has seen 13 companies from 5 different sectors raising to fund their next stages of growth. The materials sector was the most active sector with 7 placements completed totalling just under $199m raising at an average discount of 12.5% to trading halt price.

The largest placement of the week was undertaken by (ASX:SYA) at an issue price that was almost double the issue price of their previous placement that occurred in early July 2021.

Placement Overview

*Placements are limited to those which left a trading halt between 04/10 and 09/10

Sayona Mining Limited (ASX:SYA) raised $100m via placement with funds to be used to support the acquisition of Moblan Lithium Project in Northern Québec, Canada, amid accelerating battery metals demand from North America. The issue price of $0.145 represented a 17.1% discount on the last close price. The issue price of $0.145 is nearly double the company’s previous placement (announced 12 July 2021) which was conducted at $0.075.

Navarre Minerals Limited (ASX:NML) raised $36.6m via placement with proceeds raised from the placement to be used to partly fund the $40 million upfront consideration and associated transaction costs of Navarre’s acquisition of the Mt Carlton Gold Mine and Crush Creek project, located in Queensland, Australia from Conquest Mining Pty Limited, a 100% owned subsidiary of Evolution Mining Limited. The issue price of $0.075 represented an 18.4% discount on the last close price.

Alligator Energy Limited (ASX:AGE) raised $11m via placement at an issue price of $0.0625 which represented an 8% discount to the last closing price and a 9.3% discount to the 30 day VWAP. A 1 for 10 loyalty option to be offered to all eligible AGE shareholders on the record date on or around 25 October 2021, priced at $0.045 and expiring 1 Feb 2022.

The funds raised will enable Alligator to accelerate, add to and extend the following work programs:

• Samphire Uranium Project:

  • Increase the quantum and proportion of sonic core resource drilling at Samphire, and continue this into next year, to ensure best quality information for resource enhancement and hydrogeology;

  • With initial drilling, undertake hydrogeology study, groundwater monitoring, initiate social impact plan, other baseline monitoring, and project approvals scoping;

  • Add an IX pilot program for uranium extraction to the field leach trial planned post the scoping study, required for a feasibility study;

• Enlarge the Nabarlek North IP and drilling program in the ARUP next year, along with advancing other exploration projects;

• Assist in the evaluation and funding of potential future uranium project opportunities;

• Strategic partner opportunities with Traxys and working capital requirements.

Sector Breakdown

For a more detailed look at how the ASX sectors are performing check out: https://www.freshequities.com/ASX/sectors 

90 Days Post Placement Performance

Looking back 90 days to see how placements have performed post placement takes us back to the end of May 2021. This week saw 25 placements completed. The three top performing placements over the 90 days all saw their largest gains occur post the 60 day mark.

Top performing:

• Envirosuite Limited (ASX:EVS) peaked at a 114% increase from issue price 77 days post raise and fell back to an increase of 102% after 90 days.

• Kingwest Resources Limited (ASX:KWR) peaked at a 113% increase from issue price 88 days post raise and fell back to an increase of 69% after 90 days.

• Peninsula Energy Limited (ASX:PEN) peaked at a 127% increase from issue price 80 days post raise and fell back to an increase of 50% after 90 days.

Worst performing:

• Strike Resources Limited (ASX:SRK) saw a 45% decrease from issue price 90 days post raise.

• Latitude Consolidated Limited (ASX:LCD) saw a 38% decrease from issue price 90 days post raise.

• Odyssey Gold Limited (ASX:ODY) saw a 31% decrease from issue price 90 days post raise.

Check out our Past Capital Raises page for more information on past transactions.