16/03/2009 - 17:14

Mirabela plans $182m capital raising

16/03/2009 - 17:14

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Mirabela Nickel plans to raise some $38 million more than the required amount of its debt facility condition in a bid to complete development of its Santa Rita nickel project in Brazil.

Mirabela Nickel plans to raise some $38 million more than the required amount of its debt facility condition in a bid to complete development of its Santa Rita nickel project in Brazil.

The company today revealed details of its capital raising efforts both in Canada and in Australia, a condition by a consortium of lenders which have committed to provide $US190 million.

Under the condition, Mirabela was required to raise $US95 million ($A144 million).

Mirabela today said it will raise $C120 million ($A143.4million), with $A38.88 million already raised with Australian investors in a private placement managed by Argonaut Securities and Macquarie Capital Advisers.

Some 32.4 shares were issued to Australia and Asian investors at $1.20 per share.

The shares will be issued on a deferred basis after all conditions to the Canadian capital raising of $C120 million ($A143.4 million) have been met.

In Canada, Mirabela plans to issue 120 million subscription receipts at a price of $C1 ($A1.20) per share.

In total, Mirabela will raise $182.3 million, some $38 million more than the required bank facility amount.

Mirabela said each subscription receipt will entitle the holder to receive one ordinary share of the company when the shares are released from escrow.

The Canadian placement is being led by GMP Securities.

Mirabela has previously said that there existed material uncertainty over the success of the capital raising, which could jeapordise its operational viability.

Shares in Mirabela last traded at $1.43.

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