Xanadu Mines completes 10 million USD capital raising

Xanadu Mines announced that it completed a share placement for 10 million USD at 17 cents per share to ensure that it remains in good financial position to finish its drilling program at its flagship Kharmagtai copper mine in the Gobi.

The share placement comes recently after the discovery of Zaraa, a new coppergold porphyry discovery at the Kharmagtai license. To continue to advance to the next steps, Xanadu went to the market to raise capital while the Australian Securities Exchange (ASX) granted a trading halt. The halt remained in place until June 15 to prepare for the placement.

The company said domestic and international institutional and sophisticated investors bought shares in the company through its latest placement as the company received strong support from existing shareholders and demand from new investors.

Discovery of the new Zaraa deposit has been the largest driving force of demand for the company’s placement and Xanadu wasted no time to take advantage while interest was high.

“The placement enables us to further strengthen our share register and balance sheet, allowing Xanadu to complete the resource drilling program at Kharmagtai unencumbered, and provide an updated mineral resource estimate before the end of 2018,” Xanadu CEO Andrew Stewart said.

“Xanadu will also progress testing of high-priority targets to make new discoveries and grow existing deposits. Xanadu believes being fully funded to complete this exciting phase places the company in a very advantageous position to maximize the benefits from the high demand and high prices for copper and gold,” Stewart added.

The company’s recent high-grade subsections from drilling at the Zaraa coppergold porphyry discovery at Kharmagtai includes 30.4 meters at 0.95 percent copper and 0.80 g/t gold.

Xanadu will now complete resource drilling at the Kharmagtai Open Pit and proceed with a scoping study, continuing exploration at the Kharmagtai and Red Mountain projects.