PERTH (miningweekly.com) – ASX-listed Metals X has launched a A$32.7-million equity raise, a day after completing a A$35-million loan finance facility agreement.
The base metals miner on Thursday said that the equity raise will include a one-for-six accelerated non-renounceable entitlement offer to raise some A$17.2-million, and an institutional placement to raise a further A$15.5-million.
The institutional placement will consist of 103.4-million shares, priced at 15c each, representing a 21.1% discount to Metals X’s last closing price on September 18.
A further 114.8-million shares will be issued under the accelerated non-renounceble entitlement offer, which will consist of an institutional entitlement offer and a retail entitlement offer.
Metals X MD Damien Marantelli said on Thursday that the funding would provide the company with the required capital to ensure that it was able to deliver on its targets.
“We are beginning to see real progress at Nifty, and the strategy in place is starting to deliver impressive results. Currently, operations are focused on addressing our cost base, mine planning, geological drilling, development into new production areas, and improvements to underground infrastructure.
“We have already flagged that mine output is expected to remain flat for the September quarter, however, we are expecting gradual improvements during the December quarter when the benefits of implementing development activities into the new mining areas bring substantial additional tonnage into the mining schedule.”
Marantelli said that further improvements were also expected in the March quarter of next year, during which time Metals X was hoping to achieve a two-million-tonne-a-year mining rate.