Weatherly raises £1.1m to bolster balance sheet
JOHANNESBURG (miningweekly.com) – In a bid to strengthen its balance sheet, Aim-listed copper-focused miner Weatherly International has conditionally raised some £1.1-million through the placing of 35.7-million new ordinary shares of 0.5p apiece with new and existing shareholders at a price of 3p a share, as well as through subscriptions for one-million ordinary shares at a price of 3p a share.
Nonexecutive director Charilaos Stavrakis had subscribed, in aggregate, for one-million new subscription shares.
The placing and subscription shares would represent about 6.4% of the company's enlarged issued ordinary share capital of 573.3-million ordinary shares immediately following completion of the placing.
CEO Rod Webster said in a statement on Thursday that it was prudent for the company to strengthen its balance sheet at this “important” time, given that much of the anticipated cash flows over the coming year from its Central Operations would be reinvested to increase production at the company’s two existing mines.
“While this is unlikely to have any effect on production for the remainder of 2013, we expect production in 2014 to move towards our 7 000 t target.
“The board is confident that, at current copper prices, exchange rates and anticipated production levels, Weatherly will have the financial resources to meet both its capital requirements and loan repayments,” he commented.
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