SALLY Malay Mining has secured commitments backing a $10 million capital raising of 12.5 million shares at 80 cents each.
The placement was managed by Argonaut Securities and made to a number of local and overseas institutional investors, some of whom are already shareholders in the company.
The funds will be used to accelerate settlement of the company’s Lanfranchi acquisition.
Sally Malay and Doneagal Resources entered into a conditional agreement with WMC Resources to acquire the Lanfranchi Nickel Mine and associated Tramways tenements for $26 million.
One condition was the joint venture obtained bank financing, however, the capital raising result means the acquisition can be completed before such financing is finalised.
The companies hope to settle the acquisition before October 29.
Earlier this month Thundelarra, Sally Malay’s joint venture partner in its east Kimberley nickel tenements, announced it had sold its 95 per cent interst in the Phillips Range Diamond Joint Venture to Uniked Kimberley Diamonds.
That sale will allow Thundelarra to concentrate its cash and management on exploring the east Kimberley tenements.
