Perth-based mineral explorer CopperCo Ltd will raise $30 million through a placement to raise funds for exploration and production expansion on the company's Lady Annie copper project, with Perth-based Mineral Securities Ltd taking a large part.
CopperCo will issue 54.4 million shares at 45 cents each, rasing $24.5 million, as well as issuing convertible notes to the value of $5.5 million.
MinSec will acquire all convertible notes issued, along with 22.2 million shares - worth $10 million.
The full text of a CopperCo announcement is pasted below
Further to the production expansion announcement on 23 February 2007, CopperCo is pleased to announce it has received firm commitments for a capital raising of A$30 million to fund continuing exploration and the planned production expansion of the Lady Annie Project.
CopperCo Limited ('CopperCo' or 'The Company') is very pleased to announce that it has firm commitments for a share and note placement with Australian and European institutional, sophisticated and professional investors to raise A$30 million.
The purpose of the equity raising is for:
- the production expansion from 19,000 to 25,000 tonnes per annum copper cathode,
- the accelerated exploration programme in assessing the Lady Annie, Mount Kelly, Buckley River and regional oxide, transitional, and sulphide copper resources, and
- working capital.
The placement will comprise A$24.5 million from the issue of 54.4 million shares at 45 cents per share of which A$1.5 million is subject to CopperCo shareholder approval under the ASX Listing Rule 7.1. In addition, the Company will, subject to shareholder approval under the ASX Listing Rule 7.1, place Convertible Notes ("Note") for the amount of $5.5 million. The issue price represents a 13% discount to the volume weighted average price for the five days ended Friday 23 February, 2007.
The Notes are convertible at 45 cents and attract no interest. The Notes are required to be converted following Foreign Investment Review Board approval, and their conversion does not result in the noteholder breaching section 606(1) or (2) of the Corporations Act.
Mineral Securities Limited, has agreed to subscribe to $10 million of the share and note placement comprising $4.5 million in the share placement (inclusive of the $1.5 million requiring CopperCo shareholder approval) and $5.5 million of the Notes.
