Shareholders of New Talisman Gold Mines applied for only 52% of shares on offer under its renounceable rights issue, leaving the underwriter to make up the balance.
New Talisman, formerly known as Heritage Gold NZ, had offered about 119.9 million shares at 1 Australian cent or 1.3 New Zealand cents apiece to raise up to $A1.2 million to develop the Talisman mine in the Hauraki District. The rights offer was one new share and an attached option for every three shares held.
The company got applications for 62.5 million shares from 379 of its 1800 shareholders, leaving a shortfall of 57 million shares, it says in a statement to the NZX. Total funds raised from the rights issue, including the underwritten shortfall and before expenses was $NZ1.5 million.
The offer was underwritten by Canaccord Genuity (Australia).
The capital raising follows a share purchase plan started in April that raised $NZ306,000.
New Talisman also owns 21.7%of Broken Hill Prospecting, which is planning to develop a cobalt project at Thackaringa near Australia's Broken Hill.
The dual-listed shares last traded at 0.8 Australian cents on the ASX, valuing the company at about $A4.1 million, and have fallen by about a third this year. The NZX-listed stock was last at 1.1 cents and has dropped 46% this year.