AFR: Listed explorer Stavely Minerals in share placement

Copper and gold explorer Stavely Minerals was fronting investors for a $3 million placement on Friday to fund exploration and working capital needs.

The offer was priced at 15¢ a share, a 25 per cent discount to the last close and 31.5 per cent discount to the 10-day volume weighted average price.

The term sheet sent to potential investors said Stavely had room for oversubscriptions in the placement, and planned to raise another $1.5 million via a share purchase plan later.

Petra Capital was the sole lead manager and book runner on the placement and called for bids by 5pm Friday.

Stavely owns mineral exploration projects in Victoria, Queensland and Tasmania, including its western Victorian Stavely gold and copper project.

The company had a $52.2 million market capitalisation before the raise. Just two years ago, it raised equity at 60¢ a share or four times Friday’s offer price.

Its cash call comes as mining bosses mull whether to defer capital raisings until their share prices recover, or to pull the trigger and cop discounts way steeper than where stocks have traded over the past year.

Source: The Australian Financial Review