Xanadu Mines expects to raise Aus$8 million from a share placement with funds to support a winter exploration program at its Kharmagtai project in Mongolia and to reduce the project’s deferred acquisition consideration.

The company has received irrevocable commitments from new and existing sophisticated and institutional shareholders for the placement which will be completed in two tranches. Tranche one will consist of 56.2 million shares to be issued under Xanadu’s 15% placement capacity in accordance with ASX Listing Rule 7.1. The second tranche consists of 7.8 million shares to be issued subject to shareholder approval.

Xanadu’s CEO Andrew Stewart said, “We are delighted with the strong support received from our existing sophisticated and institutional shareholders, and are very pleased to welcome a number of investors as new shareholders.”

A comprehensive work program, comprising approximately 15,000 metres of diamond and reverse circulation drilling is being finalized to expand the limits and grade of deposits not included in the current resource inventory and to follow-up on recent trenching success at Tsagaan Sudal.

Drilling has also been planned to test areas of porphyry mineralization under shallow cover.

In conjunction with the placement, Xanadu is offering its shareholders the opportunity to subscribe for up to $15,000 in Xanadu ordinary shares per eligible shareholder under a Share Purchase Plan at the same price as the placement for additional funds of up to $2 million.

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