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Hillgrove raises cash to fund switch over

23rd September 2013

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

  

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PERTH (miningweekly.com) – Copper miner Hillgrove Resources has raised A$10.8-million through a share placement of 153.7-million new shares at 7c each to institutional and sophisticated investors.

Current shareholders subscribed for over 70% of the shares, which the company said on Monday endorsed the current commercial and operational outlook.

The placement price represented a 12.5% discount to the closing price of 8c a share on September 18, and a 12% discount to the volume-weighted average price of Hillgrove shares during the five days prior to September 18.

The funds raised would be used to finalise the settlement with the previous mining contractor, and to provide a working capital buffer. Earlier this year, Hillgrove executed a settlement deed with contractor Exact Mining Services, allowing the ASX-listed Hillgrove to take over mining operations at the Kanmantoo mine.

MD and CEO Greg Hall said that providing a solid capital platform for the company was prudent at a time when new mining operations had transitioned to Hillgrove’s management and operators, and new long-term contracts for equipment supply and maintenance had been entered into.

“With the successful transition at Kanmantoo to the new mining services and the progress plant and new crusher continuing to perform in a reliable manner, this successful equity raising will allow us to support our improving cash flow and profit from the Kanmantoo copper mine,” said Hall.

Edited by Creamer Media Reporter

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