Some 21 per cent of Mount Gibson Iron shareholders have participated in a $96.5 million rights issue, with the remaining shares to be taken up by APAC Resources and Shougang Concord.
In a statement released after market close today, Mount Gibson said the shareholder take-up of the issue raised $20.3 million or 33.8 million shares.
Over 127 million shares were up for issue, with the remainder of the shares to be subscribed to by APAC (82.9 million shares) and Shougang (44.16 million).
In a separate arrangement, Shougang will subscribe to a further $66 million worth of shares.
The announcement is below:
Mount Gibson Iron Limited (Mount Gibson) wishes to advise that the participation rate in its rights issue, which closed on 6 January 2009, was approximately 21.0 per cent (i.e. a take-up of 33,805,916 shares), which will raise approximately $20.3 million. These numbers include the 32,829,629 shares subscribed for by members of the APAC Resources Limited group pursuant to the take-up of rights to which they were entitled in respect of Mount Gibson shares held as at 2 November 2008, which they committed to do.
Under the terms of the separate underwriting agreements with each of APAC Resources Investments Limited (APACRIL) and Shougang Concord International Enterprises Company Limited (Shougang Concord) (together the Underwriters), the Underwriters will subscribe for the remaining 127,066,874 shares. Of those shares, APACRIL will subscribe for 82,900,000 and Shougang Concord will subscribe for 44,166,874 raising a further A$76.2 million.
