Los Cerros Limited (ASX: LCL) has received strong commitments from professional and sophisticated investors for its $20 million capital raising.
The company received firm bids for well in excess of the $20m target, with its exploration successes and path forward very well received throughout a recent international roadshow.
Managing Director, Jason Stirbinskis, said that notably, the company has welcomed two high profile North American gold funds which are collectively investing approximately $10 million in the Placement (individually their holdings are under 5% of the company).
Joining them are a number of institutional and high net worth investors from Australia, UK, and Asia, as well as existing professional and sophisticated shareholders.
Sprott Capital Partners and Euroz Hartleys Limited acted as Joint-Lead Managers for the Placement. Treadstone Resource Partners acted as a strategic and financial adviser to Los Cerros.
Again, we have been extremely pleased with the reception during this capital raise. Our success during the last 18 months has placed us on the radar of some of the most significant, influential, and experienced investors in the mining sector,” Mr Stirbinskis said.
“I see that as a resounding endorsement of the team’s performance and success and the enormous potential that remains ahead of us”.
The $20m capital raise will boost the company’s cash reserves to more than $24 million and will be primarily applied to exploration at the Quinchia Gold Project (100% owned) and the Andes Gold Project (90% owned) in Colombia, including:
- progressively ramping up from the current three diamond rigs up to five active diamond rigs;
- calculation of a maiden Mineral Resource in respect of the Tesorito South prospect;
- commencing initial metallurgical studies in respect of the Tesorito South prospect;
- completion of final submissions (EIA and community consultation) in relation to Miraflores mining approvals;
- geophysical studies and surface works at earlier-stage prospects within the Quinchia Gold Project;
- surface work and geophysical surveys at key epithermal and porphyry targets within the Andes Gold Project, subject to the granting of applications on these titles;
- ongoing social programs; and
- working capital, including costs of the offer.