Western Desert chooses capital raising in lieu of debt
PERTH (miningweekly.com) – Iron-ore developer Western Desert would raise some A$30-million in a share placement to sophisticated and institutional investors to replace a revolving credit facility provided by Noble Resources.
Around 46.15-million new ordinary shares were issued at a price of 65c each to raise the funds.
In addition, Western Desert said on Friday that it would launch a share purchase plan, under which shareholders could subscribe for up to A$15 000 in new shares. It placed a cap of A$15-million on the share purchase plan.
“The board decided that our working capital requirements were better managed by way of equity, rather than expensive debt including commercial terms that we consider are not in our long-term interest,” said Western Desert chairperson Rick Allert.
MD Norm Gardener added that the company was now fully funded to complete the development of its Roper Bar project, with first shipment due in late November.
“We are on budget for all development costs, with around 25% of those remaining,” he said.
Gardener noted that the company’s total bank debt would not exceed A$85-million, which for an iron-ore project producing some three-million tonnes a year, was very low by industry standards.
Noble Resources would continue on as offtake partner.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Leading condition monitoring specialists, WearCheck, help boost machinery lifespan and reduce catastrophic component failure through the scientific...
VISIT SHOWROOM
Press Office
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
