Ferro-Alloy Resources Ltd revealed, after the market close on Thursday, that it had raised, in aggregate before expenses, approximately £8.6mln (approximately US$10.0mln) from the placing, share subscription and PrimaryBid offer announced earlier in the day.
In a statement, the mining and processing company, with operations based in Southern Kazakhstan, said it raised gross proceeds of £8.2mln (approximately US$9.5mln) through the issue of an aggregate of 68,424,084 new ordinary shares at a price of 12.0p per ordinary share from the placing, share subscriptions which were supported by both existing shareholders and new investors.
The placing of 64,007,418 new ordinary shares was conducted through an accelerated bookbuild process undertaken by Liberum Capital and Shore Capital acting as joint bookrunners and raised approximately £7.7mln (approximately US$8.9mln). The share subscription was of 4,416,666 new ordinary shares to raise approximately £0.5mln (approximately US$0.6mln).
In a separate statement, Ferro-Alloy said the PrimaryBid offer was well supported and fully taken up, raising gross proceeds of approximately US$0.5mln also at 12p per ordinary share. The company said it will issue and allot a total of 3,601,267 PrimaryBid shares to satisfy the offer.
As a result, the company noted that Vision Blue Resources Limited's participation in the placing remains unchanged. Vision Blue Resources, the group's strategic investor and substantial shareholder, had indicated that it intended to cornerstone the fundraising by maintaining its percentage shareholding and acquiring any shortfall in demand to ensure that £8.6mln is raised.
Ferro-Alloy had said the funds raised will be used to complete a feasibility study for the giant Balasausqandiq vanadium deposit in Southern Kazakhstan as soon as possible. On July 1, the group said the scope of the feasibility study had expanded considerably since its inception.