Perth-based minerals investor Mineral Securities Ltd has been provided with a secured term finance facility of $8 million from Macquarie Bank, to be used for investment opportunities and retiring short term facilities.
Perth-based minerals investor Mineral Securities Ltd has been provided with a secured term finance facility of $8 million from Macquarie Bank, to be used for investment opportunities and retiring short term facilities.
Late last year the company had flagged preliminary merger discussions with the Robert Champion de Crespigny-chaired Scarborough Minerals plc, which last year acquired an 18.3 per cent holding in MinSec in a complicated cash and scrip deal.
Meanwhile, MinSec subsidiary Niplats Australia Ltd raised $2 million to fund exploration of its mineral sands projects and its proposed initial public offering later in the year.
After the sale of 13.3 million shares in the company at 15c each to raise the money, MinSec remains the majority shareholder with 40 million shares, or 61.13 per cent of all shares issued.
The full text of a company announcement is pasted below
Mineral Securities Ltd is pleased to announce that its partly owned subsidiary, Niplats Australia Ltd has raised a further $2 million at 15c from professional investors. The funds raised will be applied to exploration and metallurgical testing of Niplats' mineral sands projects and the proposed Initial Public Offering of Niplats in 2007.
Following the raising Minsec holds 40 million shares in Niplats which represents an interest of 61.13 per cent.
Niplats has established a portfolio of 100 per cent owned mineral sand projects covering approximately 11,000 sqkm in zircon-rich provinces in Western Australia, Victoria, New South Wales and Queensland. Niplats' ground acquisition strategy over the last two years has secured advanced project areas containing resources that exhibit potentially favourable mining and processing options and good infrastructure. In addition, exploration projects have been secured in provinces where potential paleo-shoreline targets are interpreted, with high value, zircon and rutile-rich mineral assemblages.
Niplats' 2007 planned work programme includes activity in four States with a focus on continued resource drilling, metallurgical test work and scoping/pre-feasibility studies at Wedderburn, bulk sampling at Avonbank in Victoria, exploration drilling at Plumridge, Pioneer and Yaringa in Western Australia, and Magic in New South Wales.
In addition, Minsec has entered into a put option agreement to acquire 6,666,667 Niplats shares in consideration for the issue of new Minsec shares to the holder of the Niplats shares. The put option may only be exercised by the Niplats shareholder if the board of Niplats has not resolved to list the shares on the Australian Stock Exchange or any other approved exchange prior to 30 June 2007. In accordance with the requirements of Listing Rule 3.10.3, Minsec discloses the following additional information regarding the proposed issue of new Minsec shares:
- The Minsec shares to be issued will be fully paid ordinary shares in the capital of Minsec ranking pari passu with all other fully paid ordinary shares currently on issue;
- The number and issue price of Minsec shares to be issued is to be calculated by dividing A$1 million by the higher of the volume weighted average price of a Minsec share for the 30 day period ending on the date that notice of exercise of the put option was given to Minsec or $1.15. Based on the closing price for a Minsec share on ASX on 25 January 2007, this would equate to a maximum of 625,000 new shares; and
- Minsec does not at the date of this announcement propose to seek shareholder approval in relation to the proposed issue of shares that might arise from the exercise of the put option.