Metals X Ltd (ASX:MLX) has completed an institutional placement to raise $100.6 million and is now undertaking a share purchase plan of to raise up to $15 million.
The company is also looking to demerge its gold division from the remainder of its diversified base metal assets, following the takeover of Aditya Birla Minerals Ltd’s (ASX:ABY) Nifty copper mine.
Over the past few years, Metals X has made a number of shrewd acquisitions and has built a formidable diversified mining company.
It has three operating gold projects, four process plants with 5.5 million tonnes per annum capacity and has built a gold resource base of 15.4 million ounces and ore reserves of 2.89 million ounces.
It currently produces at a run-rate of 220,000 ounces per annum and is targeting to double this over the next few years.
The takeover of the Nifty copper mine in Western Australia has bolstered the company’s base metals division, which can now stand alone as a diversified base metals company.
Consequently, Metals X will now take steps to seek approval to separate its gold and remaining base metal assets.
The demerger would require shareholder and other regulatory approvals and is subject to accounting and taxation advice.
Share Purchase Plan
Metals X’s share purchase plan is intended to raise up to $15 million from eligible shareholders who can invest up to a maximum of $15,000 each.
The issue price under the plan will be the same as the placement price, being $1.48 per share.
The gross proceeds raised from the $115.6 million raising will be used to expedite the development of several of the company’s projects in both the gold and base metals divisions.
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