Benz Mining (ASX:BNZ) announced a major $75 million capital raising through a "bought deal" placement, a move described by management as a transformational step for the company.
The placement, issued at $2.32 per CDI, was heavily oversubscribed and driven by strong demand from high-quality offshore institutional investors, including a leading global fund manager who cornerstoned the deal.
Following the completion of the placement, Benz will boast a formidable pro-forma cash position of approximately $94 million.
This capital injection is earmarked for an aggressive expansion of activities at the company’s flagship Glenburgh Gold Project and the nearby Mt Egerton site in Western Australia.
Specifically, the funds will support intensive RC and diamond drilling programs focused on resource growth, infill drilling, and extending known mineralisation at key targets such as Icon and Tuxedo.
Chairman Evan Cranston noted that the strong institutional support serves as a significant endorsement of recent discoveries at Glenburgh, which is increasingly viewed as a premier emerging gold district.
Settlement of the placement is expected on Feb. 5, with the new securities slated to commence trading the following day.
At the time of reporting, Benz Mining's share price was $2.63.