Photo by: Bloomberg
PERTH (miningweekly.com) – Gold miner Dragon Mining will delist from the ASX in favour of a listing on the Hong Kong Stock Exchange, with the company telling shareholders that it is also planning a A$17.5-million capital raise in conjunction with this new listing.
Dragon on Friday said a delisting from the ASX was in the best interest of shareholders, as at least 53% of the company’s shares are currently beneficially held and controlled by three unassociated shareholders, all of whom reside outside of Australia.
Shareholders holding a further 16.36% interest in the company are also not residents in Australia.
Further, all of the country’s operations are located in Finland and Sweden.
In addition, Dragon told shareholders that there had been little investor interest from Australian resident investors in its foreign assets, with the board believing this would make a further capital raising in Australia difficult to achieve on terms acceptable to the board, and in the best interest of shareholders.
As part of its plans to list on the Hong Kong Stock Exchange, Dragon will undertake a public offer to raise some A$17.5-million, with the company saying that the offer will not be made or received in the Australian jurisdiction, and that Australian residents will not be allowed to participate.
Funds raised will go towards developing the Fäboliden gold project, as well as covering the costs of the delisting and general working capital.
The change in listing, as well as the capital raise, will be subject to shareholder approval, with a meeting called for May 2.