Sentinel raises $15m ahead of Big Springs gold project buy in US
ASX-listed Sentinel Metals has received firm commitments to raise $15-million through a placement of 25.8-million new fully-paid ordinary shares to sophisticated and institutional investors at an issue price of $0.58 apiece.
The placement was strongly supported by existing shareholders and new sophisticated and institutional investors, reflecting strong interest in Sentinel's proposed acquisition of the 1.01-million-ounce Big Springs gold project, in Nevada, from ASX-listed Capricorn Metals.
Capricorn subscribed for $3-million worth of shares in the placement.
The successful completion of the bookbuild satisfies a key condition precedent to the acquisition, being Sentinel receiving firm commitments under the placement to raise a minimum of $15-million before costs.
Funds raised through the placement will be applied towards the cash consideration component of the acquisition, exploration activities at Big Springs and Columbia, costs of the offer and working capital.
The placement remains subject to shareholder approval, with a general meeting expected to be held in late August.
"We are delighted with the strong support received for the placement, which reflects the strategic significance of the Big Springs acquisition and the significant opportunity it creates for Sentinel shareholders.
“Big Springs is a rare opportunity to acquire a one-million-ounce gold asset in Nevada, one of the world’s premier gold jurisdictions, with existing mining approvals, substantial exploration upside and potential near-term development optionality.
“Together with our Columbia gold/silver project in Montana, the acquisition will transform Sentinel into an emerging North American gold company with mineral resources across two advanced projects in Tier-1 US mining jurisdictions," says MD Matt Herbert.
