One of the top three capital raisings so far this year, Sandfire Resources’ massive placement and retail entitlement offer has been fully underwritten.
Sandfire (SFR) is raising $1.248 billion to partly fund the $2.5 billion acquisition of the MATSA copper mining complex in Spain.
The raise ranks only behind Transurban’s $2.9 million raise and the Bank of Queensland’s $1.35 billion haul.
Sandfire’s raise consists of a $285 million placement, $641 million institutional placement and a $322 million retail entitlement offer.
Sandfire Resources CEO Karl Simich spoke with The Market Herald Deal Room earlier this week.
Mr Simich said the deal was pivotal to re-setting the company for the decades ahead.
“Funding is effectively from our cash, from a large equity raising at $5.40 a share and then also from utilising and upscaling (to a small extent) the debt facilities that are presently on the MATSA project,” he said.
“The MATSA project itself (in the last 12 months up to June 30 2021) produced cashflows in excess of US$400 million from its earnings in that year, and the year of 2022 is expected to be as good as that, if not better.”
Sandfire Resources has a market cap of about $1.8 billion and share trade opened at $5.19 this morning.
Meanwhile Sayona Mining (SYA) announced it had firm commitments to raise $100 million through a placement to support its acquisition of the Moblan lithium project in Northern Quebec.
It has invited shareholders to participate in a non-renounceable rights issue in a bid for a further $25.5 million, at the same 14.5 cents issue price as the placement.
Also this week, MSL Solutions (MSL), a point of sale solutions business specialising in sporting clubs, arenas and venues, announced a share purchase plan (SPP). The SPP would give retail shareholders the chance to increase their holdings at the same price as an unsecured $4.5 million convertible note with US-based Taubman Capital.
The SPP opened following news MSL had acquired OrderMate in a $7.5 million cash and scrip deal, a complementary point-of-sale business focussed on restaurant and takeaway food venues.
CEO, former Australian rugby union star Pat Howard, said Taubman Capital had been an investor in the entertainment, hospitality and technology sectors and had recently invested in Venuetize, a mobile technology and eCommerce platform for the sports, hospitality and entertainment industries.
“We want to be fair to our shareholders that have been through some ups and downs over the period,” Mr Howard said.
“New management came in a couple of years ago, we’re really proud of the turnaround, but we want to make sure there’s an opportunity for those shareholders that have been there for a long time to average their position, if they want to, and make sure they can benefit on the upside.”
MSL Solutions’ SPP shares are issued at 20.5 cents.
The company has a market cap above $82 million and share trade opened at 24 cents today.
Also announcing a capital raise this week was Field Solutions (FSG) which specialises in delivering fixed wireless telecommunications services to regional and remote areas, including farms and mine sites, where there is no NBN.
The company is now operating in every Australian state except South Australia.
To expand the fixed wireless roll out, Field raised $20 million through an institutional placement. The raise was done at 16.5 cents which marked a 3.1 per cent discount to the 15-day volume-weighted average price.
MD and CEO Andrew Roberts said the raise was the company’s first.
“We’ve been very quiet in the market, we haven’t really done a capital raise at all before,” he said.
“We’re building 16 new networks over the next two years taking us to 190,000 square kilometres of coverage across regional, rural and remote Australia.”
Field Solutions Holdings has a market cap of $118.5 million and share trade opened at 17.7 cents today.
This week, the Market Herald Deal Room also covered a $31 million equity raise by King Island Scheelite (KIS), which is now fully funded to re-start the Dolphin Tungsten mine on King Island, Tasmania.
Executive Chairman Johann Jacobs said the company was on track to produce tungsten by the first quarter of 2023.
This week’s interviews
The program also interviewed several ASX listers. These include: Experience Co (EXP) CEO John O’Sullivan about the Trees Adventure acquisition, and Nova Minerals (NVA) CEO Chris Gerteisen who discussed the company’s exploration work in Alaska.
We also interviewed and XTEK (XTE) Group CEO Scott Basham. XTE is raising to support its new strategy around producing armour, helmets and unmanned aerial vehicles for defence forces.
To see these interviews or for more capital raising news, just search for your companies of interest on the search tab here at The Market Herald.