OM Holdings has announced a plan to raise $24 million to fund continued development at its OM Sarawak manganese and ferrosilicon smelting project in Malaysia.
The company announced today it would launch a placement to investment groups New Trump Technology and Trisail Investment Holdings, priced at 40 cents per share, to secure the funds.
OM said the proceeds would provide a buffer against any unexpected cost increases in the construction phase of the Sarawak project and also fund the acquisition of a mining fleet and refurbishment activities.
“The investors assessed OMH as an attractive long-term investment opportunity and have expressed strong support for the continued executive of the company’s current growth strategies, and specifically in relation to the delivery of the OM Sarawak ferro alloy smelting project,” the company said in a statement.
At 12:30PM, WST, OM Holdings shares were up 1.3 per cent, at 38.5 cents.
The $US315 million OM Sarawak smelter project is being developed in joint venture with Malaysia’s Cahya Mata Sarawak Bhd.
The smelter will have the capacity to process 575,000 tonnes per year of ferro alloys, which will be used in manganese alloy production, once completed.