Ascot signs up Gunvor for capital raise
PERTH (miningweekly.com) – ASX-listed Ascot Resources has signed up global commodities trader Gunvor Group to participate in a capital raise.
Ascot on Friday reported that Gunvor would acquire about 20-million new shares in Ascot, at a price of 25c each, for a total investment of A$5-million.
The share issue formed part of Ascot’s greater capital raising of A$11.2-million, which would allow the company to progress with the development of its Wonmunna iron-ore project, in Pilbara, to reach a construction-ready state by 2015.
“To have the backing of Gunvor, a leading global commodities trader, reflects our ability to execute on our project development strategy for Wonmunna and to meet an expedited production timeframe,” said Ascot executive chairperson Paul Kopejtka.
In July this year, Ascot agreed the terms of the Wonmunna asset buy with owner Ochre Group Holdings. The two companies had initially agreed that Ascot would issue Ochre with 88-million fully paid ordinary shares, along with an initial cash consideration of A$2-million. A further A$29.75-million would be payable within five years of the transaction completion date, with an interest rate of 5.88% payable on the additional consideration.
However, Ascot in July told shareholders that the companies had agreed on revised terms, which would see Ascot issue only 50-million fully paid ordinary shares. The cash consideration would remain unchanged at A$2-million, and would be payable on completion of the transaction.
The additional consideration had also been dropped from A$29.75-million to A$19.95-million, with the funds payable within five years of first production and ore sales.
The Gunvor investment would be subject to the successful completion of the Wonmunna acquisition, as well as Ascot completing the remainder of the capital raise.
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