Photo by: Bloomberg
PERTH (miningweekly.com) – Copper developer CuDeco has struck a deal with Chinese investment group Focus Sun Holdings, which would result in a A$50-million capital injection to complete the Rocklands project, in Queensland.
Under the terms of the agreement, some 40-million shares would be issued at a price of A$1.25 each, to raise the capital. The funds would be received in two tranches, with the first tranche of A$5-million already received.
The second tranche of A$45-million would be payable on Foreign Investment Review Board approval, as well as CuDeco shareholder approval.
On the completion of the share placement, Focus Sun would receive a further 20-million options, exercisable at A$1.25 each, at any time within two years, with the Chinese group also allowed to appoint one executive director to the CuDeco board.
In addition to the Focus Sun agreement, CuDeco had also placed a further 1.2-million shares, priced at A$1.25 each, for a further A$1.5-million. The placement was agreed to as a means to introduce a strategic investor to the company’s register.
CuDeco said on Monday that the capital raised would be sufficient to complete capital works at the $300-million Rocklands mineral processing facility, and to provide the company with sufficient working capital to satisfy the listing requirements for the Hong Kong Stock Exchange.
The Rocklands project is expected to include a three-million-tonne-a-year processing plant, and will produce 480 000 t/y of copper/gold, pyrite/cobalt and magnetite concentrate. The processing facility was due for commissioning in late July, or early August.