PERTH (miningweekly.com) - Manganese miner OM Holdings (OMH) was looking to raise some A$26.25-million through a share placement to strategic investors.

OMH said on Monday that it would issue some 75-million shares, at a price of 35c a share. This represented an 8.8% discount to the 15-day volume-weighted average price, and a 5.2% discount to the 30-day volume-weighted average price of OMH shares.

The net proceeds of the placement would finance the development activities at the Sarawak ferroalloy project, in Malaysia, as well as assist in the financial close of the project, which was expected to take place in the second quarter of this year.

OMH said that the placement to investor Boustead Singapore also represented the formalistaion of a strong strategic relationship with one of South East Asia’s most successful, progressive and experienced engineering services businesses.

The miner said that the strategic relationship begween OMH and Boustead, which had undertaken infrastructure-related projects in 79 countries globally, brought together international experience in the development and commissioning of engineering and infrastructure-related projects to OMH’s future growth plans in the manganese industry.

OMH said that given the strategic, operational and geographical synergies created through this relationship, the company has granted Boustead the right to nominate someone to the OMH board. It was expected that Boustead would exercise this right shortly after the placement was completed.

The manganese miner would now seek shareholder approval for the share placement, with a meeting expected in late February.
 

To subscribe to Mining Weekly's print magazine email subscriptions@creamermedia.co.za or buy now.