West Perth-based mineral explorer Precious Metals Australia Ltd has completed its $48.5m share placement after receiving shareholder approval at a meeting this morning.
West Perth-based mineral explorer Precious Metals Australia Ltd has completed its $48.5m share placement after receiving shareholder approval at a meeting this morning.
PMA managing director Roderick Smith said the money raised would go to the redevelopment of the company's Windimurra Vanadium Project.
The full text of a company announcement is pasted below
Australian-based ferro-alloys company Precious Metals Australia Ltd today announced that it has today received shareholder approval for the second tranche of the recently announced $48.5 million institutional share placement. Together with the current Share Purchase Plan, which closes tomorrow (25 January), this amounts to a total capital raising of more than $50 million.
The substantial raising will be used for general working capital purposes and to accelerate the A$200 million redevelopment of PMA's 90%-owned Windimurra Vanadium Project in Western Australia. The A$50 million capital raising represents a key component of the overall finance package for the Windimurra Project, increasing PMA's available cash reserves to nearly A$100 million.
At a shareholder meeting in Perth today (24 January 2007), approval was received for the issue of 13,543,731 ordinary shares at A$1.95 each, to raise A$26.4 million, representing the second tranche of the placement. The first tranche, comprising the issue of 11,328,064 ordinary shares at A$1.95 each to raise $22.1 million, was completed on 12 December 2006 under the Company's 15% placement capacity and in accordance with ASX Listing Rules.
The placement, which was heavily oversubscribed, was completed with a number of leading Australian and international institutional shareholders and clients of Australian broking firm, Patersons Securities Limited. Patersons acted as Lead Manager to the placement.
Speaking at the shareholder meeting today, PMA's Managing Director, Mr Roderick Smith, said the combination of the institutional placement and SPP had resulted in a significant expansion of PMA's investor base and the introduction of a number of new shareholders.
"We are delighted to welcome a number of new major long-term institutional shareholders, complementing our existing strong shareholder base," Mr Smith commented. "At the same time, there has been a very strong response to the SPP, which has provided existing and new shareholders with the opportunity to increase their exposure to the Company and has already received applications in excess of the underwritten amount of $1.5 million. We will announce the results of the SPP early next week after it closes, but we anticipate that it will result in a significant expansion of our share register."
"Apart from effectively securing the equity component of the funding package for the redevelopment of Windimurra, this capital raising has broadened our investor base and we expect will significantly increase liquidity in the Company's shares," he added. "We regard this as particularly important at this critical stage in the Company's evolution as we embark on a major growth and development phase."
Mr Smith said the capital raising would enable important site pre-development works to continue at Windimurra while the remainder of the project finance package was completed. "We are currently in discussions with a number of parties to secure an appropriate debt funding arrangement for the remaining capital required," he said. "We anticipate having full funding in place before the end of March 2007."
First production at Windimurra is targeted for early 2008, and when operating at full capacity, the mine is expected to supply around 8% of the world's total vanadium output.
