Finders undertakes $15.3m equity raising to fund Wetar copper project
Tuesday, May 27 2014 - 04:56 AM WIB
ASX-listed copper producer Finders Resources Limited unveiled Tuesday equity raising plan to raise up to US$15.3 million to help finance the expansion of its Wetar copper project in Maluku Province.
The company said in a statement that the equity raising will be undertaken through a placement of up to 71.4 million shares to raise $10.0 million to institutional and sophisticated investors followed by a 1 for 15 Non Renounceable Entitlement Offer to raise a further $5.3 million.
The placement and entitlement offer will be undertaken at an offer price of $0.14 per new share. It is proposed that the entitlement offer will be underwritten by Morgans Corporate Limited and Blackswan Corporate Limited (the joint lead managers).
The funds to be raised through this equity raising will complete the proceeds from the previously announced fund raising programs to finance the expansion of the Wetar copper project (95 percent owned by Finders) as well as funding for further exploration and working capital.
Finders announced on May 12 that it has secured debt and project equity finance for the Wetar copper project. It said that leading international trading house, Daewoo International Corporation (Daewoo) will provide US$45 million in project level equity, while leading banks including BNP Paribas, Commonwealth Bank of Australia, Hong Kong and Shanghai Banking Corporati on (HSBC) and Societe Generale (the senior Llenders) have signed a credit approved commitment letter for $165 million of senior loan facilities, the statement added.
Finders, which started copper production from Wetar on 31 March 2014, plans to expand the copper cathode smelter project from the current capacity of 3,000 tons per annum to 28,000 tpa. The company was expected to start construction of the project expansion works in June 2014. Production from the expanded plant is scheduled to come online in the second half of 2015.
Shares in Finders entered into trading halt on Tuesday and will remain in halt tomorrow while the placement is undertaken. Trading is expected to recommence on Thursday 29 May 2014 following the announcement of the outcome of the equity raising.
Editing by Reiner Simanjuntak