Metals X raises $50m

Perth-based Metals X has raised $50 million via an institutional placement, with the proceeds set to be spent at the company’s Nifty copper project in the Pilbara.

Metals X issued 76.9 million shares at 65 cents each, representing an 8.5 per cent discount on its last closing price.

Citigroup and Macquarie Capital acted as joint lead managers and bookrunners to the placement, while Canaccord Genuity acted as co-manager.

Managing director Warren Hallam said the funds provided financial flexibility as the company continued to ramp-up production at Nifty to 40,000 tonnes per annum.

He said the proceeds would also be spent on exploration at Nifty and the company’s Renison tin operations, along with general working capital.

“Metals X, as an established copper and tin producer, is well positioned with its growth portfolio of short, medium and long term opportunities to generate strong cash flows with long-life mines,” Mr Hallam said.

“Given the recent volatility in copper price and the slower than expected ramp-up at Nifty, as previously announced, we considered it prudent to further strengthen our balance sheet to provide additional financial flexibility for our producing operations while accelerating our exploration, growth and development projects.

“The $50 million proceeds of the placement, together with our current available cash on hand of $31 million at June 30 2018 will provide us with the financial flexibility to achieve these strategic growth objectives.”

Shares in Metals X last traded hands at 71 cents each.