PERTH (miningweekly.com) – Gold miner Newcrest Mining has successfully completed a A$1-billion fully underwritten institutional placement, with some 39.1-million shares placed at a price of A$25.6 a share.
Newcrest earlier this week announced plans for the raising, along with a A$100-million share purchase plan (SPP), to fund the purchase the Fruta del Norte financing facilities, for $450-milion and to fund future growth options such as the construction of declines at Havieron and Red Chris.
“We are pleased with the continued support from our institutional shareholders, their confidence in Newcrest’s long-term growth strategy and their support for the Fruta del Norte transaction,” said Newcrest chairperson Peter Hay on Friday.
“Our strong balance sheet position and free cash flow generation positions us well to fund our growth options.”
The institutional share placement was conducted under Newcrest’s existing capacity, and did not require shareholder approval.
Meanwhile, the SPP will open on May 7, and would allow eligible shareholders to subscribe for up to A$30 000 worth of additional shares in the gold miner. The offer will close on May 27.