Xanadu Mines raising $1m to fund final approvals with Chinese giant Zijin

Xanadu Mines (ASX:XAM) confirmed its commitment from professional investors for $1.1m to fund the final approvals process of its partnership with Chinese mining giant Zijin on Wednesday. 

The value of the Zijin partnership

“Once the Zijin Strategic Partnership is approved, we will look forward to a period of strong news flow,” Xanadu Mines chief Colin Moorhead said.

The company will also hold an Extraordinary General Meeting (EGM) on Tuesday 7 February seeking shareholder approval for the strategic partnership with Zijin. 

The strategic partnership will see Zijin lend Xanadu a further A$7.2m and a further US$35m into the Kharmagtai project. 

“We [are set to] embark on the Kharmagtai Pre-Feasibility Study and continued exploration to target higher grade, gold-rich bornite zones at depth.” 

Placement details 

The company is offering shares at $0.027, representing a 7% discount to the 30-day Volume Weighted Average Price (VWAP). 

All in all, 41.887m new shares are being issued. 

The placement will settle on Monday 23 January with allotment and trading to occur the following Tuesday. 

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