Santana Minerals (ASX:SMI) announced a major financial milestone, securing firm commitments for a $130 million institutional placement aimed at accelerating its flagship Bendigo-Ophir Gold Project.
The capital raise involves the issuance of approximately 144.4 million new fully paid ordinary shares priced at $0.90 per share.
To ensure equitable participation, the company also intends to launch a share purchase plan for existing shareholders in Australia and New Zealand at the same price point.
The placement is structured in two tranches, with the second phase contingent upon shareholder approval at an extraordinary general meeting scheduled for late March.
The influx of capital is designed to finalise the equity portion of the project’s funding requirements, while negotiations for complementary debt funding continue to progress.
According to CEO Damian Spring, the proceeds will be instrumental in shifting the project toward active production.
The capital raise was spearheaded by Canaccord Genuity and Bell Potter Securities, acting as joint lead managers, signaling strong institutional confidence in Santana’s transition from explorer to producer.
At the time of reporting, Santana Minerals' share price was $0.87.