A summary of companies that initiated capital raisings last week.
Market cap pre-raise
Post raise performance*
Intra Energy Corp
Caprice Resources (ASX: CRS) - Rare earths, ~$40m mktcap
Caprice shares rallied 16.7% the day it resumed trading. In parallel with the raise, the company acquired the 380km 2 Mukinbudin Rare Earth Element Project – a relatively early-stage project that contains several known pegmatites. The company said this move was a 'natural addition to diversify the current base metals and gold portfolio'. Initial work will involve a systematic mapping and sampling program to build up a geochemical database.
Genmin (ASX: GMD) - Gold, ~$500m mktcap
Genmin shares briefly rallied 28.5% to $1.54 when it resumed trading but finished the session up 15.5%. Two days later, the shares would briefly slump to the raise price of $1.20. The mid-tier gold miner is set to merge with the embattled St Barbara (ASX: SBM) to form a 'leading Australian gold house'. Post-merger, St Barbara shareholders will own 38% of the new entity, Genesis 41% and proceeds from the recent capital raising will account for the remaining 22%. The company expects the merger to eliminate up to $400m in capex and unlocks ~$200m in unique synergies.
Mincor (ASX: MCR) - Nickel, ~$700m mktcap
Mincor raised $55m to accelerate the development of its Golden Mine and drilling activity at the Cassini prospect.
Broker notes: Macquarie retained an OUTPERFORM rating and a $1.80 target price for Mincor. The capital raise was viewed as a catalyst for more balance sheet flexibility as the company progresses the two key projects above.
Get the latest news and insights direct to your inbox