07/07/2009 - 10:39

Ammtec to raise $13.5m for new plant

07/07/2009 - 10:39

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Metallurgical testing company Ammtec has raised $11.5 million and plans to raise a further $2 million, as the board declares a final dividend.

Ammtec to raise $13.5m for new plant

Metallurgical testing company Ammtec has raised $11.5 million and plans to raise a further $2 million, as the board declares a final dividend.

The company said today it had successfully placed $11.5 million worth of shares to institutional investors, with the placement managed by Sydney-based Foster Stockbroking.

In addition, chairman David Macoboy and non-executive director Ross Norgard have indicated their desire to participate in the placement, subject to shareholder approval.

Ammtec will also raise a further $2 million through a share purchase plan to with shareholders able to subscribe to up to $15,000 worth of shares each.

Funds raised will be used to fund a new hydrometallurgical pilot plant facility which will be used to conduct large scale hydromet pilot testing on nickel, uranium and other base metals.

The facility will be built next to Ammtec's existing facilities in WA.

Meantime, the directors of Ammtec have also declared a final dividend of 10 cents per share, payable in October.

In May, the company revised down its full-year profit guidance from $8.7 million to $7 million due to declining demand for its engineering services.

Shares in Ammtec were down nine cents to $1.91 at 12:17 AEST.

 

 

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