04:53 PM EST, 11/18/2024 (MT Newswires) -- Xanadu Mines ( XANAF ) .TO after trade Monday said it is expanding its previous share placement to raise a total of A$7.5 million.

This includes the original placement of 100-million shares, raising A$5.5 million, and an additional 36.5-million shares worth A$2 million, the company added.

The first agreement is with a new Australian investor for 10-million shares. This will be issued under the company's existing placement capacity. The second agreement is with Xanadu's largest shareholder, Zijin Mining Group, through its subsidiary Jinping (Singapore) Mining. Zijin will purchase 26.5-million shares, subject to shareholder approval at a meeting in December. Following this, Zijin will own about 19.42% of Xanadu's shares.

Proceeds from the expanded placement and the company's existing cash reserves will be used to support Xanadu's Red Mountain Copper-Gold Project, Sant Tolgoi Nickel-Copper Project, new acquisitions, and working capital, the company said.

Xanadu shares closed unchanged at $0.05 on the Toronto Stock Exchange.