Sumatra Copper & Gold taps market for $20m

Sumatra Copper & Gold is seeking to raise $20 million to put towards development at its flagship Tembang gold-silver project in Indonesia.

Sumatra launched a fully-underwritten rights issue yesterday, on the basis of two new CDIs for every five CDIs held, priced at 17 cents each.

The offer will be sub-underwritten by Sumatra’s major shareholder, Provident Capital Partners.

Sumatra said the proceeds would boost working capital at the Tembang project and assess potential new opportunities.

Allion Legal acted as Sumatra’s legal adviser on the entitlements offer.

“We are delighted to have been able to act for Sumatra Copper & Gold plc in the context of this significant equity capital raising in respect of CDIs in challenging market conditions,” Allion Legal senior associate Phil Lucas said.

At 12:30PM, WST, Sumatra shares were down 2.5 per cent, trading at 19 cents.