Sumatra Copper to raise A$1.71m

By Romel S. Gurky

ASX-listed Sumatra Copper & Gold plc said Monday it has received irrevocable and firm commitments to raise approximately A$1.71million (equivalent to US$1.25million at an exchange rate of 0.7321) by way of a placement of CHESS Depositary Interests (CDIs) in the company to professional and sophisticated investors.

The company said that under the terms of the CDI placement the company will issue 34,148,342CDIs, representing approximately 4.8 percent of the total CDIs on issue subsequent to issue of the placement CDIs, at a price of A$0.05 per CDI.

Sumatra Copper said it has also made an irrevocable and firm allocation to investors of 17,074,171warrantsfor no consideration, each warrant giving the holder the right to subscribe for one CDI in the company (warrant placement). 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$0.057 each, a term of two years and are not transferable. The warrants will not be quoted on ASX.

?The company 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, Sumatra, associated working capital requirements and extensional exploration at Tembang,? Sumatra Copper said.

The CDI placement and warrant placement are being undertaken utilizing the company?s existing placement capacity under ASX Listing Rules 7.1 and 7.1A and consequently the company will not require shareholder approval in order to complete the CDI placement and warrant placement, it said.

Settlement of the CDI Placement is scheduled to take place on August 4 with issue of CDIs and issue of warrants scheduled for August 5, 2015.

Editing by Reiner Simanjuntak