04/08/2010 - 07:04

Allmine launches $10m capital raising

04/08/2010 - 07:04

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Resources-focused services company Allmine Group has launched a $10 million capital raising effort to fund its plan to become a mid-tier mining services player focused on plant and equipment maintenance.

Allmine launches $10m capital raising

Resources-focused services company Allmine Group has launched a $10 million capital raising effort to fund its plan to become a mid-tier mining services player focused on plant and equipment maintenance.

If successful the capital raising will value the company at $27 million, according to its prospectus.

The prospectus also states that funds will be applied to complete the acquisition of Godfrey's Fitting Services in Karratha, reduce existing debt facilities by $5 million and provide working capital to fund organic growth.

Allmine has agreed to pay more than $1.8 million for Godfrey's, with full settlement deferred until the determination of a $700,000 EBITDA for the past financial year.

The company was previously called Earthvest but adopted the current name after acquiring the WA operations of Gavin Smith's business which was registered as Allmine (WA) Pty Ltd.

Mr Smith is now a key executive in charge of WA operations which represent the biggest proportion of the Melbourne-based group's business which is focused on providing products and services required to keep mining machinery, equipment and fixed plant operating.

In recent years it has merged five well-established mining services businesses, including Allmine (WA) to form the group. It has service centres situated in Karratha, Leinster, Perth and Darwin.

In addition, Allmine operates an after-market earthmoving parts business, Wildkat, operating as a standalone warehouse distribution business across Australia and Fiji.

Allmine's says its strategic objective in the medium term is to develop into a mid-tier mining service provider.

It plans to establish new service centres in additional locations in the Pilbara and also in the Hunter Valley, New South Wales and Bowen Basin, Queensland.

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