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- Mineral Commodities (MRC) receives binding commitments to undertake a $3.2 million placement
- A total of 22.85 million fully paid ordinary shares will be issued to sophisticated and institutional shareholders at 14 cents each
- Following completion of the placement, the company will undertake a fully underwritten non-renounceable rights issue to raise up to $7.4 million
- Upon execution of the placement and rights issue, MRC will have $10.6 million which it will use to continue with planned exploration activities
- After being reinstated to official quotation, shares in Mineral Commodities are down 2.44 per cent and trading at 20 cents at 1:32 pm AEST
Mineral Commodities (MRC) has received binding commitments to undertake a $3.2 million placement.
The company entered a trading halt on June 25 but did not disclose how much it intended to raise or what it would be using the funds for.
A total of 22.85 million fully-paid ordinary shares will be issued to new and existing sophisticated and institutional shareholders at 14 cents.
This price represents a 32 per cent discount to Mineral Commodities’ close on July 2 of 20.5 cents and a 34 per cent discount to the 30-day volume-weighted average price of 21.1 cents.
Mineral Commodities expects to complete the placement by July 5.
Following completion of the placement, the company will be undertaking a fully underwritten non-renounceable rights issue to raise up to $7.4 million.
Eligible shareholders will be able to subscribe for one new share for every nine held as of July 16.
The rights issue has been fully underwritten by Chairman David Baker, Corporate Development Officer Peter Fox and largest shareholder Au Mining.
Upon completion of both the placement and rights issue, Mineral Commodities will have $10.6 million which it will use to continue with planned exploration activities, upgrades and product installation.
After being reinstated to official quotation, shares in Mineral Commodities were down 2.44 per cent and trading at 20 cents at 1:32 pm AEST.
