West Perth-based copper explorer Altona Mining is seeking to raise $70 million to fund development of its Outokumpu project in Finland and exploration activities at its Roseby project in Queensland.
Altona announced today it would undertake an accelerated non-renounceable pro-rata entitlement offer, fully underwritten by Credit Suisse (Australia), and an institutional share placement.
Altona said all shareholders could participate in the entitlement issue, while the placement would improve liquidity in the company's stock and broaden the institutional component of its share register.
The private company of Altona chairman Kevin Maloney, Tulla Resources, would take up its entitlement in full, Altona said in a statement.
Subject to shareholder approval, Tulla will seek to increase its stake in Altona to 7.5 per cent.
"All other directors are taking up their entitlement in full or in part," Altona said.
The company has also mandated Credit Suisse to provide a project facility for Outokumpu of up to $20 million.
Shares in Altona were placed in a trading halt on Monday and last traded at 39 cents.
Over the past 13 months Altona has purchased a processing plant in Finland, merged with Vulcan Resources and commenced construction of the mine at the Outokumpo Project.
Altona chairman Kevin Maloney said the equity raising was the best choice to fund the development of Outokumpo and drilling programs at Roseby.
"Looking forward, it will maximise our flexibility in mid-2012 by enabling us to apply potential positive cash flow towards the development of, what is expected to be a very large, Roseby Project," Mr Maloney said in a statement today.
