New Century Resources Ltd (ASX:NCZ) has boosted its finances with the completion of a 1 for 4 non-renounceable pro-rata entitlement offer of new fully paid ordinary shares to raise A$46.9 million.
The entitlement offer closed on November 19, 2021, after receiving acceptances for more than 158 million new shares, leaving a shortfall of 144 million shares, which has been fully allotted to existing and new shareholders.
Notably, New Century has also executed long-form documentation for the new environmental bond facility (EBF), another key milestone for the company’s transformational ESG focused growth transaction.
Offer summary
Total funds raised under the entitlement offer was the full amount as disclosed in the prospectus.
New shares under the entitlement offer will be issued on November 26, 2021, and are expected to begin trading on the ASX on November 29, 2021.
Notably, the new shares will rank equally with existing ordinary shares on issue.
Zinc hedging expanded
The company has also recently expanded its long-term zinc hedging program with Macquarie Bank Ltd covering the flagship Century project in Queensland.
This second tranche of hedging consists of fixed price, Australian dollar swaps for a total of 90,000 tonnes of payable zinc metal, spread in equal monthly volumes of 3,750 tonnes over two years from January 1, 2022, to December 31, 2023. The weighted average price achieved, net of all fees and costs, is A$3,938/tonnes.
In addition, Sibanye Stillwater Ltd has agreed to purchase a 19.99% interest in New Century Resources for a cash consideration of A$46 million.
Furthermore, the company has also acquired Mt Lyell copper mine at Queenstown on Tasmania's west coast.
