Western Desert raises A$19m in share purchase plan
JOHANNESBURG (miningweekly.com) – Iron-ore group Western Desert Resources has raised A$19.43-million from existing shareholders in the share purchase scheme (SPS) it announced in September.
Western Desert initially said that it would cap the SPS at A$15-million, but reported on Friday that it had elected to accept more subscriptions, owing to the strong support from its existing shareholders.
Under the SPS, 29 893 094 new shares would be issued to participating shareholders. The issue price is A$0.65 a share, which is a 12.75% discount to the closing price of A$0.745 a share on September 18.
The proceeds of the capital raising will be used to replace a revolving credit loan that Noble Resources would have provided and will be used for the development of the A$200-million Roper Bar iron-ore mine, in the Northern Territory.
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