Sumatra Copper to raise $5.1m via placement
Thursday, March 26 2015 - 01:11 AM WIB
ASX-listed Sumatra Copper & Gold plc said Thursday it has received irrevocable and firm commitments to raise approximately A$5.1 million (equivalent to US$4.0 million at an exchange rate of 0.78) by way of a placement of CHESS Depositary Interests (CDIs) in the company (CDI Placement) to professional and sophisticated investors.
The firm said in a statement that under the terms of the CDI Placement the company will issue 88,521,828 CDIs, representing approximately 13 percent of the total CDIs on issue subsequent to issue of the Placement CDIs, at a price of A$0.058 per CDI.
The company said it has also made an irrevocable and firm allocation to investors of 44,260,914 warrants for no consideration , each warrant giving the holder the right to subscribe for one CDI in the company.
The warrant placement equates to 1 warrant per 2 CDIs to be issued under the CDI placement. The warrants have an exercise price of A$0.06 each, a term of two years and are not transferable. The warrants will not be quoted on ASX.
The company said it intends to use the net proceeds of funds raised from the CDI placement for the purposes of the construction and development of the company's Tembang Gold-Silver Project (Tembang) in Indonesia, associated working capital requirements and extensional exploration at Tembang.
The CDI Placement and Warrant Placement are being undertaken utilising the Company?s existing placement capacity under ASX Listing Rules 7.1and 7.1A and consequently the Company will not require shareholder approval in order to complete the CDI Placement and Warrant Placement.
Settlement of the CDI Placement is scheduled to take place on Monday 30 March 2015 with issue of CDIs and issue of Warrants scheduled for Tuesday31 March 2015.
Editing by Reiner Simanjuntak