15/05/2012 - 15:25

Mirabela launches $120m raising plan

15/05/2012 - 15:25

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Mirabela launches $120m raising plan

Mirabela Nickel has launched a $120 million capital raising, to boost the company’s coffers after its stocks plunged to a near all-time lows due to tough conditions in the nickel market.

The company said it would raise the funds through a $20 million placement priced at 40 cents per share, to investment house Resource Capital fund, and a $100 million, eight-for-13 share offer to existing shareholders, priced at 30 cents per share.

Resource Capital Fund said it would underwrite the share offer to a maximum of $40 million.

Macquarie Capital will act as lead manager and bookrunner to the offer.

Mirabela yesterday announced a $US27.5 million quarterly loss, after being hit by a sharply declining nickel price and a production drop of 16 per cent at its Santa Rita nickel mine in Brazil.

The company’s stock has been in a trading halt on the ASX today, having last traded at 34 cents.

Mirabela shares hit their lowest point since late 2004 last week, trading at 30 cents on May 9.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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