News & Insights

Bellanhouse. Clients. Strong start to the financial year

Strong start to the financial year: $130m in capital raisings

Bellanhouse mining and resources clients have experienced a strong start to the 2019-2020 financial year, with over $130m secured from capital raisings and corporate bonds.

New Century Resources Limited, Bellevue Gold Limited, Newfield Resources Limited, Liontown Resources Limited and Calidus Resources Limited announced significant transactions in July and August this year.

Bellevue Gold also won the Emerging Company award at Diggers and Dealers 2019, announced at the Gala Dinner held in Kalgoorlie earlier this month.

Partners Bryn Hardcastle, Shaun Hardcastle, Deanna Carpenter and Dave Filov and Associates Alex Dewhirst and Nick Harrison advised our clients on the transactions, with details outlined below.

New Century Resources Limited

New Century (ASX:NCZ) successfully completed its oversubscribed fully underwritten placement, raising $42.5m from institutional investors. Under the placement, 128.8 million shares will be issued at an issue price of $0.33.

The funds will be used to double plant capacity to 12Mtpa at the Century zinc mine in Queensland.

The Company is now fully focused on executing the remainder of the ramp up process at the Century zinc mine.

Read the ASX announcement.

Newfield Resources Limited

Newfield (ASX:NWF) announced a positive Final Investment Decision for its flagship Tongo Diamond Mine Development in Sierra Leone (Tongo) together with binding agreements to issue unsecured corporate bonds totalling up to approx.US$30.5m (approx. A$45m).  

The bonds will be issued to two existing major shareholders. Proceeds will go towards commencing the initial phase of construction at Tongo, as well as providing working capital. The first diamonds are expected within 12 months of the initial portal blast.

Karl Smithson, Newfield Executive Director, said, “We are delighted to have agreed a funding package that allows us to commence construction of the Company’s flagship Tongo Diamond Mine Development. We will now move to commence development activities at Tongo following the positive Final Investment Decision made by the Newfield Board.”

Read the ASX announcement.

Bellevue Gold Limited

Bellevue Gold raised $18.5m via completion of its institutional placement, fully underwritten by Canaccord Genuity.

Bellevue will issue 32.4 million shares at an offer price of $0.57 per share.

The funds raised will be used to advance an ongoing step-out resource growth exploration drilling and an infill drilling program, as well as provide working capital.

Bellevue’s Managing Director, Steve Parsons said, “We are now fully funded to undertake significant infill drilling to further define the Bellevue Gold Project’s existing resource based in addition to expanding the step-out exploration drilling program over the next 12 months.”

Read the ASX announcement.

Liontown Resources Limited

Liontown (ASX:LTR) raised $18m via a placement at $0.12 per share to institutional investors.

Proceeds will be used to accelerate activities at its 100% owned Kathleen Valley Lithium Tantalum Project and Buldania Project, both in WA. Liontown’s flagship Kathleen Valley Project is now fully funded through to completion of a Definitive Feasibility Study in 2020.

Managing Director of Liontown, David Richards said, “This placement substantially de-risks Liontown’s development pathway and puts us in a great position to systematically advance both of our high-quality Australia lithium assets towards development.

The strong demand from investors to the placement is testament to the quality, grade, scale and location of the Kathleen Valley Project – which is now Australia’s fifth largest spodumene lithium resource.”

Read the ASX announcement.

Calidus Resources Limited

Calidus Resources Ltd (ASX:CAI) raised $9m via a placement at $0.032 per share to institutional investors.

The funds raised will be used to undertake an extensive resources drilling programme to expand the current resource base and complete a definitive feasibility study.

Calidus Managing Director, Dave Reeves said, “The equity raise follows the release of an outstanding PFS which shows the Warrawoona Gold Project in WA’s Pilbara will be a robust operation with strong financial returns. Calidus is now well positioned to fund the next stage of growth through continued exploration success and project development at the Warrawoona Gold Project.”

Read the ASX Announcement.

For more information, please contact:

Bryn Hardcastle

MANAGING PARTNER