15/12/2009 - 08:44

Q Copper IPO lowered to $165m

15/12/2009 - 08:44

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Cape Lambert Resources has shaved $39 million off the initial raising amount of spin-off Q Copper after a UK investor pulled out at the last minute.

Cape Lambert Resources has shaved $39 million off the initial raising amount of spin-off Q Copper after a UK investor pulled out at the last minute.

Cape Lambert Resources said today that Q Copper will now raise a minimum of $164.5 million in its initial public offer with shares priced at $1.

Previously, Q Copper was to raise a minimum of $203 million and a maximum of $214 million.

Late last week, Cape Lambert placed a suspension order on its shares, advising that the IPO had yet to be completed.

It's understood a UK investor, introduced by Cape Lambert, had to pull out of its commitment. Cape Lambert was managing 25 per cent of the IPO funds with the balance managed by Patersons Securities, which had previously said its portion was oversubscribed.

Q Copper was to buy the Lady Annie copper mine in Queensland from Cape Lambert for $158 million if full subscription was achieved.

Under the revised prospectus, Cape Lambert will now receive $137.5 million for the mine, which has been placed on care and maintenance after heavy rainfall earlier this year.

Cape Lambert executive chairman Tony Sage said the lower Lady Annie price will not affect the special 10 cents dividend shareholders will receive from the sale.

Q Copper's IPO has been extended to February 3 2010.

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