Aeris Resources Ltd (ASX:AIS) has successfully completed a fully underwritten placement offer and institutional entitlement offer at $0.105 cents per new share for total funds raised of $74 million.
The company raised circa $43.9 million through the institutional placement with approximately $30.1 million raised via the entitlement offer.
These funds will, in part, be used to fund the cash consideration for the acquisition of Round Oak Minerals and associated costs.
A further $17.1 million is set to be raised via a placement subject to Aeris shareholder approval, along with a retail entitlement offer, which opens on May 5 and closes on May 22, to raise approximately $26 million.
Successful institutional raise
The institutional entitlement offer was well supported by existing eligible institutional shareholders, who took up approximately 59% of their entitlements.
Aeris raised approximately $30.1 million through the issue of approximately 286.84 million new shares at $0.105 per share.
The institutional shortfall and institutional placement were oversubscribed by existing eligible institutional shareholders and new institutional investors.
Each new share issued under the institutional entitlement offer will rank equally with existing Aeris shares on issue and are expected to be issued on May 6.
Aeris also entered into a placement agreement with existing institutional shareholder, Paradice Investment Management Pty Ltd, for a placement of additional Aeris shares at the offer price to raise a further $17.1 million.
Retail raise
Retail investors also have the opportunity to participate in a fully underwritten raise at the same offer price and offer ratio as under the institutional entitlement offer. This is expected to raise $26 million, which also go towards the Round Oak acquisition.
Eligible retail shareholders who take up all of their entitlement may also apply for additional new shares in excess of their entitlement and there is no cap on the amount of additional new shares that eligible retail shareholders can apply to take up through their shortfall election.
Round Oak acquisition
AIS will acquire Round Oak Minerals Pty Limited for a total purchase consideration of A$234 million, in a transaction that is expected to transform Aeris into a diversified, mid-tier producer with a strong balance sheet to deliver an organic growth pipeline.
The acquisition will deliver two cash generative, operating base metals mines in Queensland and Western Australia and also introduces a long-life copper/zinc development project in Victoria.
For the full story read: Aeris Resources in "transformational" agreement to acquire Round Oak Minerals and its base metal operations