Next Investors logo grey

WMN bags cornerstone investor

Published 29-OCT-2015 12:27 P.M.


2 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

Graphite player Western Mining Network (ASX: WMN) has declared that it should be producing operating revenue within a year after securing a $6 million funding deal which will allow it to build a mini-plant in Indonesia.

It completed a placement to UK-based Lanstead Capital LP, issuing 30 million shares at 20c per share, a 25% premium to WMN’s last trading price. Following the deal, Lanstead will hold 16.68% of WMN’s share capital.

Lanstead has also picked up 7.5 million options at 27c each, exercisable on or before 30 June in 2017.

However, a flexible sharing agreement could net WMN a lot more should its share price hit 27c or above in the next 18 months.

While WMN will grab $900,000 immediately, it will take the rest of the $6 million in monthly installments from Lanstead.

The monthly payments and issue will be based on a benchmark price of 27c per share.

Should the WMN share price finish above 27c in any given month, WMN will receive more cash than is due.

Should it fall below 27c, it will get less.

The $6 million figure is based on the benchmark price of 27c.

WMN told investors that there is no upper limit on the additional amounts it would receive from Lanstead should the WMN share price go up, and it wouldn’t issue any new shares to Lanstead should the price drop below 27c.

CEO David Putnam told the market that the deal is a signal to the market on its growth strategy, and the additional funding would allow it to get to revenue quicker.

“Most important of all this investment provides the capital required to execute critical operating initiatives and should ideally see us produce our first revenue within the coming year,” Putnam said.

In any case, the cash from the deal will be used to sort out a scoping study and the construction of WMN’s first pilot plant as part of its graphite project in Indonesia.

The game plan

Earlier this month WMN unveiled its plan in Indonesia to build two mini-plants capable it producing five tonnes of graphite per day at it Kalimantan and Sulawesi projects.

The plants will reportedly be capable of producing varying degrees of graphite, with low grades going for less than $US1000 ($A1408.04) to $10,000.

The lower grade graphite will simply require more conventional beneficiation techniques such as crushing, milling, agitation, and floatation.

The higher-end processing is planned to be farmed out to its partners, including South Korea-based Carbon Nano Tech.

However, to get the ball rolling WMN wants to build two mini plants based at the two projects.

WMN CEO David Putnam has been working since he was appointed in July this year to tie up funding for the next stage of the WMN plan.



General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.