PERTH (miningweekly.com) – ASX-listed Newfield Resources has announced a A$16.98-million equity issue consisting of a loan conversion and share placement.
The company on Monday announced that it would repay A$13.86-million of an existing loan through the conversion into fully paid ordinary shares in the company, with Newfield still able to draw on the undrawn balance of the loan, being A$1.44-million.
The conversion will be conducted at a rate of 15c a share, and will result in Newfield issuing more than 92.4-million shares under its existing placement capacity. The loan conversion price represents an 11.3% discount to the company’s 15-day volume weighted average share price, and is equal to the last closing price on September 13.
On conversion of the shares, lender Wonder Holding’s share in Newfield will increase from 0.04% to 10.48%.
Meanwhile, Newfield will also raise $2-million under a share placement, with the company to issue more than 20.75-million shares at a price of 15c each. The settlement of the placement is expected to occur on September 22.
The shares will also be issued under the company’s existing placement capacity, and will not require shareholder approval.