Jabiru Metals Ltd is to raise $51.9 million through a placement at 80 cents per share, to fast track its exploration programme and feasibility studies of its base metals projects.
The placement was priced at a 15 per cent discount to Jabiru's most recent trading price of 94 cents but was well above lows of 55 cents at which the company traded in March 2008.
A Jabiru statement is pasted below:
The Directors of Jabiru Metals Limited ("Jabiru" "the Company") are pleased to advise that the Company has resolved to raise up to $51.92 million through the issue of up to 64.9 million shares at an issue price of $0.80 per share, predominately to international and domestic institutional clients of Hartleys Limited ("Hartleys") and existing major shareholders. Hartleys is Lead Manager to the Offer.
The monies raised will strengthen the balance sheet of Jabiru to enable the Company to:
- Fast-track exploration of the Teutonic Bore Exploration Project and in particular around the Jaguar and Teutonic Bore mines;
- Fast-track exploration at the Stockman Project, where drilling is currently underway; and
- Fast-track Stockman feasibility studies.
Jabiru Managing Director Mr Gary Comb said "Jabiru is delighted with the support it has received for this placement from new and existing shareholders. With the Jaguar Project cashflow positive from March and funds raised pursuant to the placement, Jabiru will be well placed to fast track exploration programmes and feasibility studies of its base metals projects."
The placement of new shares will be undertaken within the Company's ASX Listing Rule 7.1 15% placement
capacity.
Consolidated Copper Pty Limited has confirmed to Jabiru that it will subscribe for new shares in the placement to retain its current interest of approximately 27%. As Consolidated Copper Pty Limited already holds more than 15% of the Company's share capital, its agreement to subscribe for shares pursuant to the placement so as to maintain its current percentage interest in the Company is conditional on the prior approval of, or non-objection to, that acquisition under the Foreign Acquisitions and Takeovers Act 1975 (Cth). Its new shares pursuant to the placement will not be issued unless or until that condition is satisfied.
