PERTH (miningweekly.com) – Mining services provider Ausdrill was hoping to raise some A$100-million through a share placement to institutional and sophisticated investors to fund its future growth opportunities, particularly in Africa.
The ASX-listed company told shareholders that it would issue up to 46.8-million fully paid shares, at a price of A$2.14 each, to raise the funds. The issue price represented an 8.9% discount to Ausdrill’s last closing price on the ASX, and a 5.3% discount to the company’s five-day volume weighted average price.
The shares will be placed under the company’s existing capacity, and as such would not require shareholder approval.
Meanwhile, the company on Tuesday also announced the successful refinancing and up-sizing of its revolving debt facility from A$125-million to A$200-million.
The facility remains largely undrawn, and along with the proceeds from the placement and current cash reserves, will provide Ausdrill with the balance sheet strength and flexibility to capitalise on the strong pipeline of growth, particularly in Africa.
“We executed exactly what we planned, which was to take advantage of the strength of our significantly improved credit metrics to ensure adequate levels of liquidity for the group, which is currently experiencing strong growth,” said CFO Theresa Mlikota.
“This new debt arrangement will provide flexibility to assist in delivering our strategy of being a leading provider of integrated mining services in Australia and Africa.”