Metminco Limited (LON:MNC) today confirmed it has completed a A$5.6mln entitlement offer, which forms part of the group’s refinancing and relaunch.
It will now issue 694.8mln new shares to subscribing shareholders, with each new share priced at 0.8 Australian cents each. Additionally, the investors will receive options (a total of 231.6mln will be issued) creating the possibility for a further issue of equity before June 2020.
READ: Metminco announces rights issue take-up of around 72%
The offer was underwritten by Patersons Securities, which is now placing a A$1.53mln shortfall to sub-underwriters.
The mining junior told investors that the injection of capital will be used to repay debts and relaunch exploration on the high potential Tesorito gold prospect in Colombia. At the same time, the group’s new management is seeking to sell non-core assets in Chile whilst reducing overhead.
Following the capital raise and debt repayment, the company expects to be in a “good financial position”, anticipating more than A$3mln of cash and limited debt.
"The issue was well supported and is seen as encouragement for the new exploration strategy,” said Kevin Wilson, Metminco executive chairman.
“We thank existing shareholders for their continuing support, welcome new shareholders and look forward to deploying the funds to work on the company's exciting gold portfolio in Colombia."