17/11/2009 - 08:41

Perilya launches $55m capital raising

17/11/2009 - 08:41

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Miner Perilya has launched a $55 million fully underwritten rights issue with funds to be applied towards organic growth and deliver projects that will complement its existing operations.

Perilya launches $55m capital raising

Miner Perilya has launched a $55 million fully underwritten rights issue with funds to be applied towards organic growth and deliver projects that will complement its existing operations.

The Perth-based company today launched a one-for-three rights issue that will involve the issue of up to 131 million shares at a discounted 42 cents each.

Shares in Perilya climbed half a cent to 52c at 11:13 AEDT.

Perilya's largest shareholder, Zhongjin Lingnan Mining has agreed to subscribe for its full entitlement under the offer to maintain its 50.1 per cent interest.

Zhongjin has also agreed to underwrite up to 10 million shares, which if exercised, could result in the Chinese entity holding a 52 per cent interest in Perilya.

UBS is the lead underwriter and sole manager of the transaction.

Funds from the raising will be used to evaluate and progress satellite ore bodies close to Perilya's Broken Hill mine, the Reliance project in South Australia and the Mount Oxide copper project in Queensland.

"Whilst these projects are at various stages of progress, from exploration through to feasibility, it is anticipated that in the coming months some of these projects will go before the Perilya board for development decisions," Perilya said in a statement.

The closing date for the offer is December 14.

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