Sumatra Copper gets commitment from investors to raise US$2.62m
Friday, January 27 2017 - 05:27 AM WIB
Courtesy of Sumatra Cooper
ASX-listed Sumatra Copper & Gold plc announced Friday that it has received irrevocable and firm commitments to raise approximately A$3.46 million (US$2.60 million at an exchange rate of 0.7501) by way of placement of CHESS Depositary Interests (CDIs) in the company (Initial Equity Raise) to professional and sophisticated investors.
The company said in a statement it has also received irrevocable and firm applications for a total of 410,466,310 CDIs from debt providers and warrant holders to convert an outstanding redemption premium of approximately A$4.04 million to CDIs and as consideration for the termination of 250,597,351 warrants.
The company said it will also, by way of a Share Purchase Plan (SPP), provide an opportunity for eligible shareholders to acquire equity in the company at the same issue price as the Initial Equity Raise up to a maximum of A$500,000.
The Initial Equity Raise is required as a condition of the amendment of the US$45 million senior secured debt facility and warrants (Amended Facility) (refer to ASX announcement of December 23, 2016 for details of the Amended Facility). Under the terms of the Initial Equity Raise the company will issue 150,530,591 CDIs at a price of A$0.023 per CDI (Issue Price) for gross proceeds of approximately A$3.46 (US$2.60 million at an exchange rate of 0.7501).
The proceeds of funds raised from the Initial Equity Raise will be used to repay US$2.5 million of the existing Working Capital Facility with the company?s major shareholders, Provident Minerals Pte Ltd and PT Saratoga Investama Sedaya Tbk (Major Shareholders), with the balance of the net proceeds to be applied to general working capital.
The Major Shareholders contributed A$3.36 million as sponsors of the Initial Equity Raise under the Amended Facility.
The CDIs are scheduled to be issued on January 30, 2017 (Settlement Date). Argonaut Securities Pty Ltd acted as Lead Manager to the Initial Equity Raise.
Sumatra Copper & Gold plc is a gold and silver producer and precious metals explorer in southern Sumatra. The company?s flagship asset is its Tembang gold-silver mine, currently in production. The company also has an extensive exploration portfolio with projects ranging from brownfield, near-production opportunities to strategically located greenfield holdings.
Editing by Reiner Simanjuntak