- Newcrest Mining (NCM) has successfully raised $1 billion to fund future projects around the world
- The mining giant has sold more than 39 million fully paid shares at just over $25 each to generate the new funds
- Newcrest’s institutional placement was undertaken to pay for its growth at South America’s Fruta Del Norte mine, the biggest gold depository in Ecuador
- The money will also get the construction of declines underway at its Havieron mine in Western Australia and the Red Chris project on Canada’s west coast
- From next week, eligible and existing Australian and New Zealand resident shareholders can secure up to $30,000 worth of new shares via a Share Purchase Plan in the hope to raise $100 million for the company
- Despite the good news, Newcrest’s share price is down more than eight per cent, trading at $25.15 per share
Mining giant Newcrest (NCM) has successfully raised $1 billion to fund future projects around the world.
More than 39 million fully paid shares were sold at $25.60 each to generate the new funds.
Newcrest secured the cash to help grow its gold production at the South American Fruta Del Norte project, which boasts the biggest gold deposits in Ecuador.
Construction on new declines at their Havieron project in Western Australia and the Red Chris mine in British Columbia on Canada’s west coast can also begin thanks to the new funds.
“We are pleased with the continued support from our institutional shareholders, their confidence in Newcrest’s long-term growth strategy and their support of the Fruta del Norte transaction,” said Newcrest Chairman Peter Hay.
“Our strong balance sheet position and free cashflow generation positions us well to fund our growth options,” he continued.
Newcrest is now hoping to raise a further $100 million via a share purchase plan (SPP), offering eligible shareholders in Australia and New Zealand up to $30,000 worth of new shares when it opens next Thursday.
Despite the good news, Newcrest’s share price is down more than eight per cent, trading at $25.15 per share at market close.