PERTH (miningweekly.com) – Gold major Newcrest Mining has raised a further A$200-million through a share purchase plan (SPP), following its A$1-billion placement to institutional investors at the end of April.
The company this week noted that valid applications totalling about A$300-million had been received for the SPP, prompting the company to increase the size of the SPP from the initial A$100-million to A$200-million.
The shares were issued at a price of A$25.60 each.
“These funds, together with the A$1-billion raised in the recent institutional placement and our free cash flow generation, ensures Newcrest's balance sheet remains strong and positions us well to fund our future growth options,” said chairperson Peter Hay.
“We are very pleased with the strong support we have received from retail and institutional investors, indicating their confidence in our long-term strategy.”
Some 7.8-million new shares will be issued under the SPP on June 5, and will start trading on the ASX on June 9.
Newcrest previously said that the funds will be used to purchase the Fruta del Norte financing facilities, for $450-million and to fund future growth options such as the construction of declines at Havieron and Red Chris.