Decmil raises funds
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.
Comments
The
functionality
you are trying to access is only available to subscribers.
If you are already a subscriber, you can Login Here.
If you are not a subscriber, you can subscribe now, by selecting one of the below options.
For more information or assistance, please contact us at subscriptions@creamermedia.co.za.
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation