Flinders set to raise A$5m
PERTH (miningweekly.com) – ASX-listed Flinders Mines has announced plans to raise A$5-million trough a non-renoucenable entitlement offer.
Some 295-million new fully paid ordinary shares will be issued, on the basis of one new share for every ten exiting shares held by eligible shareholders. The offer will be priced at 1.7c a share, a discount of around 32% to the company’s 30-day volume-weighted average share price.
Flinders plans to use the proceeds of the raising to repay a loan from PIO Mines, a subsidiary of shareholder Todd Corporation, and to meet the minimum tenement expenditure commitments for its Pilbara iron-ore project, for the next 12 months.
Funds will also be used for the cost of the review proposed by Todd in its original bidders’ statement, and to provide working capital.
Todd earlier this year launched a takeover offer for Flinders, offering shareholders 2.5c a share for their interest. The takeover offer closed at the end of August, with Todd now holding a 52.6% interest in Flinders.
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