Metminco (ASX:MNC, LON:MNC) will raise A$30 million through a placement of 150 million shares at A$0.20 per share, with BGF Equities acting as the lead manager.
The placement, together with the acquisition of the remaining minority interests in Hampton Mining (ASX: HHM), announced on 30 September 2010, enables Metminco to focus on an aggressive exploration program to build on the 926 Mt copper/molybdenum resources already defined and to drill test several new high-priority targets on the Los Calatos project.
Funds raised will also be used to undertake a feasibility study at the Mollacas project, to advance the Vallecillo project and for working capital.
The placement, which is subject to shareholder approval, is primarily to institutional investors, significantly broadening Metminco’s shareholder base and introduces a number of strong “cornerstone” investors to the company.
Shareholder approval will also be sought to issue 160 million shares to Takoradi Limited (ASX: TKG) and 35 million shares to the Sentient Group in accordance with a purchase agreement to acquire Takoradi’s 25.4% minority interest in Hampton.