New Century sets raising target of A$42.5m
PERTH (miningweekly.com) – Base metals miner New Century Resources is hoping to raise A$42.5-million through a fully underwritten share placement to institutional and sophisticated investors, to fund the continued refurbishment and ramp-up of its Century zinc mine, in Queensland.
The share placement, which will be priced at 33c a share, will be conducted in two tranches, with the first consisting of 73.9-million new shares that will be placed under New Century’s existing capacity.
A second tranche of 54.9-million shares will be subject to shareholder approval, with a general meeting expected to be called in September.
The offer price represented a 15.4% discount to New Century’s last closing price on July 31, and a 17.9% discount to its five-day volume weighted average share price.
Following the Tranche 1 placement, New Century will undertake a share purchase plan (SPP) to existing eligible shareholders, to raise a further A$5-million. The terms of the SPP will only be announced once finalised.
New Century told shareholders that the proceeds from the placement would be used to continue the refurbishment at the New Century mine, and to ramp up the process to double the plant capacity to 12-million tonnes a year over the 2020 financial year.
The company had initially planned to draw down an existing A$40-million junior debt facility, but on Thursday noted that it had yet to achieve the conditions required to draw down the facility. The conditions for this facility had to be met by the end of August this year, unless extended. As there was no certainty that the conditions would be met in that time, or that the deadline would be extended, New Century took the decision to undertake a share placement.
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