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Xanadu Mines (TSX:XAM) secures $10.2 million for high-grade exploration at Kharmagtai
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  • Xanadu Mines (XAM) has secured a AU$10.2 million placement for high-grade exploration at Kharmagtai
  • The placement comprises approximately 163.8 million Xanadu common shares at AU$0.062 per share
  • Xanadu will use the proceeds for its Kharmagtai Phase 2 exploration program to define high-grade bornite-rich zones at depth
  • An existing shareholder has agreed to sell their shares at the offer price for approximately AU$1.4 million
  • Xanadu Mines discovers and defines globally significant porphyry copper-gold deposits in Mongolia
  • Xanadu Mines (XAM) is down by 6.67 per cent and is currently trading at C$0.07 per share

Xanadu Mines (XAM) has secured a AU$10.2 million placement for high-grade exploration at Kharmagtai.

The placement includes approximately 163.8 million Xanadu common shares at AU$0.062 per share for gross proceeds of AU$10.2 million.

The issue price of AU$0.062 per share represents a 15.1 per cent discount to Xanadu’s closing price on April 20, 2021.

Highlights

  • The placement was well supported by both domestic and international institutions
  • The Kharmagtai Phase 2 exploration program will target resource growth and the definition of high-grade bornite-rich zones at depth
  • Key shareholder SSI Asset Management AG maintains existing pro rata holdings

The placement is scheduled to settle on April 30, 2021 with allotment and trading to occur on May 3, 2021.

In conjunction with the placement, Xanadu has also entered into an agreement with an existing shareholder to sell their shares at the offer price for approximately AU$1.4 million.

The existing shareholder's sell down is scheduled to settle on or around May 6, 2021.

Argonaut Securities and CLSA Australia acted as joint lead managers to the placement.

Colin Moorhead, Xanadu's Non-Executive Chairman, commented,

"We are pleased with the strong support received from both existing shareholders and new institutional investors. This placement continues to strengthen our share register and fully funds Xanadu to execute its exploration strategy at Kharmagtai.

Investors can look forward to a period of strong exploration news flow as we embark on an aggressive drilling program to define the higher grade, gold-rich bornite zones at depth and unlock the next stage of development in this globally significant copper-gold project."

Xanadu Mines discovers and defines globally significant porphyry copper-gold deposits in Mongolia.

Xanadu Mines (XAM) is down by 6.67 per cent and is currently trading at C$0.07 per share as of 12:02 pm ET.

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