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Havilah raises cash to fund South Australia copper growth

5th October 2017

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – Junior Havilah Resources will raise about A$7-million to fund its copper growth strategy, which will see the company develop its advanced stage copper/gold/cobalt projects in South Australia.

The projects tipped for development include the 1.14-million tonne of copper and 3.3-million ounce of gold Kalkaroo project, the 100 000 t of copper and 235 000 oz of gold North Portia project, and the 192 000 t of copper and 17 500 t of cobalt Mutooroo project.

The ASX-listed miner on Thursday announced that it had raised an initial A$2-million through a share placement to institutional investor Bergen Global Opportunity Fund, consisting of 6.2-million shares at a price of 33c each.

The placement price represented a 13% premium to the company’s share price on October 2.

Havilah has also executed a funding agreement with Bergen, which could potentially provide the company with an opportunity to benefit from an appreciation in its share price.

Under the investment agreement, Bergen could, over the next 20 months, make monthly payments of A$102 500 to Havilah, adjusted depending on whether the relevant price of Havilah shares exceeded the benchmark placement price.

Havilah has agreed to make payments of A$1.6-million to Bergen in consideration for its entry into the funding agreement, and this payment could be offset by the investor from the subscription amount.

Meanwhile, Havilah on Thursday also announced a one-for-seven renounceable pro rata rights issue, at 20c a share, to raise a further A$5.4-million.

About 27.1-million new shares will be issued to shareholders, with the rights issue price representing a 31% discount to Havilah’s five-day volume-weighted average share price.

Each two new shares subscribed for would have an attaching free option to purchase an additional share for 40c each on or before the end of November 2019.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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