26/02/2010 - 10:24

Sandfire raises $51.6m in placement

26/02/2010 - 10:24

Bookmark

Save articles for future reference.

Sandfire Resources says it has raised $51.6 million through a share placement, more than the targeted amount, with funds to be applied to the Doolgunna copper-gold project in Western Australia.

Sandfire raises $51.6m in placement

Sandfire Resources says it has raised $51.6 million through a share placement, more than the targeted amount, with funds to be applied to the Doolgunna copper-gold project in Western Australia.

Following strong demand, the placement to institutional and sophisticated investors was priced at $3.20 per share, a 7.2 per cent discount to the previous closing price and a 3.2 per cent premium to the underwritten floor price of $3.10.

Shares in Sandfire reseumed trading this morning following the bookbuild, and at 13:00 AEDT were trading at $3.46, up one cent. Sandfire

A total of about 13.3 million new shares will be issued through the placement to institutional and sophisticated investors raising $42.5 million. Yesterday, Sandfire said it was targeting a raising amount of $41 million.

The new shares represent approximately 12.3 per cent of Sandfire's currently issued share capital and will rank equally with existing Sandfire shares.

Sandfire also conducted a conditional placement to Posco Australia of 2.8 million shares at $3.20 per share, the same price as the placement to institutional and sophisticated investors, to raise $9.1 million. The Posco placement is conditional on approval from the Foreign Investment Review Board.

Sandfire is also planned a share purchase plan to raise a further $15 million. Details will be released shortly.

Sandfire's managing director, Karl Simich, said: "We are extremely pleased with the level of interest shown by both new and existing investors in the placement, and we thank them for their support.

"The introduction of several leading International and Australian institutions to the Sandfire register represents a pivotal development for the Company in our evolution as a quality Australian mining company.

"The proceeds of this placement will allow us to continue to progress development of the DeGrussa Copper-Gold Project while at the same time undertaking a major exploration program across our Doolgunna tenements targeting potential repeats of the DeGrussa mineralisation."

"We are also very pleased to offer shareholders the opportunity to participate in this landmark capital raising at the same price as the institutional share placement via an SPP which will be launched in the near future," Mr Simich said.

Goldman Sachs JBWere was Sole Lead Manager and Sole Bookrunner and Bell Potter was Co-Lead Manager to the Placement. Clayton Utz acted as legal adviser to Sandfire for the placement.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options