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Aurelia raises A$70m to fund Peak mines acquisition

22nd November 2017

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online

     

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JOHANNESBURG (miningweekly.com) – New South Wales-based explorer and developer Aurelia Metals has received strong support from investors for its capital raising to fund the acquisition of the Peak mines, in Cobar, from Canadian miner New Gold.

An oversubscribed institutional placement raised A$70-million, which together with a A$45-million senior debt facility will be used to complete the acquisition, the ASX-listed company reported on Wednesday.

The institutional placement issue price of A$0.21 represented a 12.95% discount to Aurelia’s five-day volume-weighted average price on the ASX on Monday, being the day prior to the company entering into a trading halt to conduct the placement.

The capital raising comprises a share placement of up to 198.2-million fully-paid ordinary shares to qualified institutional and sophisticated investors to raise A$41.6-million and a minimum of about 135.1-million new shares to Aurelia’s major shareholder, Pacific Road to raise A$28.4-million. Additional shares may be allocated to Glencore pursuant to its anti-dilute and top-up right. 

The placement will be done in two tranches.

Aurelia will also open a share purchase plan to its existing shareholders, providing them with an opportunity to subscribe for up to A$15 000 worth of shares at A$0.21 a share.

Edited by Creamer Media Reporter

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