Tiger gears up to raise A$42.5m
PERTH (miningweekly.com) – Copper miner Tiger Resources has raised A$34-million in a share placement to institutional and sophisticated investors, and has entered into an agreement to raise a further A$8.5-million.
The ASX-listed company said on Friday that it had placed about 100-million shares, at an issue price of 34c each to raise the first tranche of funding.
The second placement would consist of 25-million shares, at the same issue price, and would be offered to key institutional long-only investment funds.
The initial share offer took place under the company’s 15% placement capacity, but the second placement would be subject to shareholder approval, Tiger said. The company would be convening a general meeting on December 10, to approve the issue of the shares.
Tiger told shareholders that the funds raised would provide the company with additional flexibility in relation to bank overdraft facilities, and would be used to augment existing working capital.
The funds would also provide contingent funding for any additional reserve payments required by Tiger’s joint venture partner in the Democratic Republic of Congo-based Kipoi project, Gecamines, and for payments due to the vendors of the Kipoi project interest.
Meanwhile, the company also announced details of a share purchase plan, allowing eligible shareholders to subscribe for up to A$15 000 of new shares, at an issue price of 34c each.
The price represented an 11% discount to the volume-weighted average price of Tiger shares over the last ten trading days to October 29.
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