29Metals has launched a fully underwritten entitlement offer to raise $151 million.
The funds are expected to go toward the Capricorn copper mine recovery plan and near-term Golden Grove capital projects.
Record seven-metre flooding forced 29Metals to suspend operations at its Capricorn copper mine in Queensland in March of this year.
“The equity raising announced today will enable the company to fund the Capricorn copper recovery plan and also provide a platform for the company to complete key growth initiatives,” 29Metals managing director and chief executive officer Peter Albert said.
“We are pleased that the Capricorn copper recovery plan continues to progress, with dewatering and rehabilitation expected to enable targeted full recovery of operations by mid 2024.”
The equity raising will be conducted through a one for 2.20 accelerated non-renounceable entitlement offer, resulting in the issue of approximately 219.1 million new shares.
The offer price of $0.690 per share represents a:
- 5.6 per cent discount to TERP of $0.731 based on the last closing price on 29 August 2023; and
- 8.0 per cent discount to the last closing price of $0.750 on 29 August 2023.
“In the near term, the company is focused on current water reduction measures as well as addressing tailings storage solutions to support operations,” Albert said.
“In the medium term, the company intends to deliver on the tremendous exploration potential at existing orebodies.”