PERTH (miningweekly.com) – Resource and infrastructure services provider Decmil on Monday announced that it had secured A$30-million in funding to support its growth working capital requirements.
The ASX-listed company has agreed to a A$20-million debt financing and A$10-million equity placement to progress its growth strategy for 2022, in response to a suite of awarded contracts and potential contract awards, which is expected to occur in the next 12 months.
The contracts will add to Decmil’s current A$570-million order book into 2023.
“The board has decided that pursuing this hybrid financing strategy is the best option available to attract the necessary funds for this proactive initiative, on terms favourable to the company,” said CEO Dickie Dique.
The debt facility has a 3.5-year term, with the option of voluntary prepayments subject to early repayment premiums, and a coupon rate of 11%. The facility terms include a lump sum payment at the end of the term, with attaching warrants for 30.8-million shares, at an exercise price of 65c each, which is subject to shareholder approval.
The equity raise will see Decmil issue 25-million shares, at a price of 40c each, representing a 7% discount to the company’s last closing price on July 21.
Placement participants will also receive one new option for every two shares subscribed for, which can be exercised at a price of 48c each and have a two-year term. The share placement will be conducted in two tranches, with the first tranche of 19.3-million to be issued under Decmil’s existing placement capacity, while the second tranche of 5.6-million shares will be subject to shareholder approval.
In addition to the debt facility and share placement, Decmil will also conduct a share purchase plan (SPP), at the same price, to raise a further A$2-million. The SPP will give shareholders the opportunity to subscribe for A$30 000 worth of additional shares in the company.