Join our daily newsletter At The Bell to receive exclusive market insights
- New Century Resources (NCZ) aim to raise $42.5 million in a capital raising for its refurbishment of its Century Zinc Mine
- A share price of 33¢ per share
- Proceeds of the capital raise will be used to refurbishment and ramp up process to double the capacity of Century Zinc
New Century Resources (NCZ) aim to raise $42.5 million in a capital raising for its refurbishment of its Century Zinc Mine.
The Placement will include a share issue price of 33¢ per share and be conducted into two tranches.
In Tranche 1, the company will issue 73.9 million new shares. Under Tranche 2 NCZ will issue 54.9 million new shares.
NCZ plans on offering a Share Purchase Plan after Tranche 1 to eligible share holders to raise up to $5 million.
The proceeds of the capital raise will be used to refurbishment and ramp up process to double the capacity of Century Zinc to 12Mtpa over the next year.
Century Mine is located at Lawn Hill which is 250km north west of Mount Isa, Queensland and began open- pit production in 1999 and closed early 2016 by MMG.
During its 16 years, Century was one of the largest zinc mines in the world, which produced an average of 475,00tpa zinc concentrate and 50,000tpa lead concentrates.
After closing an economic rehabilitation plan was in place as well as an upgraded the mine’s existing world-class infrastructure.
MMG spent over $70 million on this rehabilitation plan.
This rehabilitation was completed in August 2018 when the mine successfully entered production.
New Century Resources is an Australian based metal producer and aims to be one of the world’s top 10 zinc producers.
The company started re-treatment of tailings to the mine in August 2018.
NCZ said in the statement that there was a $40 million junior debt on the cards through Varde Partners but it decided to go with a placement.
The debt still remains available but the company has not yet achieved the conditions required for the debt.
