Xanadu Raises $1.12M to Fund Next Phase at Kharmagtai

TORONTO, May 21, 2020 (GLOBE NEWSWIRE) -- Xanadu Mines Ltd (ASX: XAM, TSX: XAM) (“Xanadu” or the “Company”) is pleased to report that is has accepted firm commitments for a placement of 34.0 million new fully paid shares in Xanadu (“New Shares”) at A$0.033 per New Share to raise approximately A$1.12 million (“Placement”).  Proceeds from the Placement will be used to underpin the next phase of activities at its Kharmagtai copper and gold project (Figure 1).

HIGHLIGHTS

• A$1.12 million raised (before costs) at A$0.033c per share, with strong demand from existing domestic and international shareholders
  
  
• Placement proceeds to fund systematic exploration activities at Xanadu’s flagship Kharmagtai copper-gold Project
  
  
• The next phase of activities at Kharmagtai include:
  
  • Diamond drilling to commence in the first week of June 2020, targeting high-grade copper-gold mineralisation
  
  • Deep penetrating geophysical program to target large-scale copper-gold deposits
  
  
• Upon completion of the capital raising Xanadu will have a cash balance of approx. A$3.1 million.

Xanadu’s Chief Executive Officer, Dr Andrew Stewart, said “Our flagship Kharmagtai project has the potential to become a world-class project, and hence we are gearing up to accelerate our exploration and development activities. Discussions with existing shareholders revealed significant investor demand that was reflected in this capital raising. The funds raised from the Placement will be used towards exploration of the Company’s flagship Kharmagtai copper-gold project. We look forward to advancing our exciting projects and to releasing more exploration results from Kharmagtai and Red Mountain in the coming weeks. The board of Xanadu would like to thank all of our current shareholders for their continued support and look forward to the next phase of growth for the Company”

The Placement was undertaken within Xanadu’s residual placement capacity in accordance with ASX Listing Rule 7.1. New Shares issued under the Placement will rank equally in all respects with existing ordinary shares of the Company.

Settlement of the New Shares is expected to occur on Wednesday, 27 May 2020, with allotment to occur on Thursday, 28 May 2020. Upon completion of the Placement, the New Shares will represent approximately 4.1% of the expanded share capital of the Company, for a total of 825,174,855 ordinary shares on issue.