13/12/2010 - 13:36

Sandfire completes part of $103m raising

13/12/2010 - 13:36

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Sandfire Resources has completed the retail component of its $103 million equity raising announced in November, with a total of $37 million raised from participating and eligible retail shareholders.

Sandfire completes part of $103m raising

Sandfire Resources has completed the retail component of its $103 million equity raising announced in November, with a total of $37 million raised from participating and eligible retail shareholders.

The funds were raised through the retail component of the 1-for-12 accelerated non-renounceable pro-rata entitlement offer which opened on November 22 and closed on December 8.

The Retail Entitlement Offer price was $6.60.

The offer was strongly supported with over 90 per cent of retail offer entitlements taken up by eligible shareholders.

The amount of the offer not subscribed for by eligible retail shareholders was approximately $3.5 million.

The proceeds of the $103 million capital raising will increase Sandfire's cash resources to approximately $135 million

In a statement to the Australian Securities Exchange, Sandfire said the funds would put it in a very strong position to accelerate development of its flagship DeGrussa copper-gold Project while maintaining an aggressive near-mine and regional exploration program.

Sandfire's managing director Karl Simich, said, "We are very pleased with the results of the retail component of the equity raising and I thank both our retail and institutional shareholders for their continued support.

"The proceeds of our equity raising leave us very well positioned to develop the DeGrussa Copper-Gold Project."

"The strength of our balance sheet will assist us to secure the best possible financing package.

Following the grant of the DeGrussa Mining Lease last week and with a Definitive Feasibility Study due during the second quarter of 2011 we are on track to commence mine development and construction before mid-year 2011," Mr Simich said.

Goldman Sachs is the Lead Manager and Bookrunner to the Offer.

Macquarie Capital Advisers and Bell Potter have acted as Co-Lead Managers to the Offer.

Clayton Utz acted as legal adviser to Sandfire in relation to the Offer.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

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