PERTH (miningweekly.com) – ASX-listed Mineral Commodities (MRC) will raise A$10.6-million through a share placement and fully underwritten non-renounceable rights issue to fund work at its Tormin mineral sands project, in South Africa, and at its Skaland graphite operation, in Norway.
The company said on Monday that it had received binding commitments for the placement of 22.85-million shares, at a price of 14c each, to sophisticated and institutional investors to raise an initial A$3.2-million.
The placement will be undertaken under MRC’s existing capacity and will not require shareholder approval.
Following the completion of the share placement, the company will undertake a one-for-nine fully underwritten non-renounceable rights issue, also priced at 14c each, to raise a further A$7.4-million.
The rights issue will open on July 21 and close on July 30.
The offer price represented a 32% discount to MRC’s last closing price on the ASX, and a 34% discount to the company’s 30-day volume weighted average share price.
MRC on Monday said that funds would be used to continue planned exploration activities, upgrades to the Phase 1 Tormin primary beach concentrator, the installation of a fourth stage cleaner circuit at the Skaland operation, and for general working capital.