Aspermont to raise $5m, convert debt

Aspermont has announced plans to raise up to $10 million by offering shares to investors and converting debt, as it seeks to shore up its balance sheet.

The company, which publishes mining magazines and runs conferences, hopes to raise $3 million by way of a partially underwritten rights issue, priced at 1 cent per share, and $2 million through a placement at the same price.

Claymore Capital has underwritten a third of the rights issue and will act as lead manager to the raising.

Aspermont also plans to convert $5 million worth of outstanding related party debt into equity at 1 cent per share.

“This major financing will enable Aspermont to capitalise on its unique position as the leading information services provider to the global mining and resources sectors,” managing director Alex Kent said.

“Our technology platforms are scalable which will leverage our profit margins both through organic growth and from a recovery in resource sector activity.

“In an environment of low to zero debt, management will be liberated to focus more time on the company’s long term business objectives.”

Aspermont shares last traded at 0.8 cents each on May 6.