Perth-based copper company Sovereign Metals Ltd will raise $5.9 million through a shares and options offer to fund its involvement in a joint venture with Mount Isa Mines Ltd - Xstrata Copper.
The company will issue 21.6 million shares at 20c each to shareholders of Echelon Resources Ltd, from which Sovereign acquired its copper and gold assets, to raise around $4.3 million, as well as permitting over-subscriptions of 4 million shares to raise another $800,000.
A further 7.9 million shares, with over-subscriptions of up to a further 4 million shares, plus any shares not subscribed for under the priority offer, will be offered to the public, raising approximately $1.6 million . For every two shares issued under both the priority offer and the public offer, shareholders will receive one free attaching listed option exercisable at 20c at any time up to June 30 2010.
The Carpentaria joint venture, in Queensland, is expected to have profitable deposits of copper, gold, lead and zinc. However, Sovereign has indicated that it will examine other new business activities, including acquisitions and joint ventures after listing.
The company is chaired by former Normandy Mining Group senior group executive Ian Middlemass, who is joined on the board by Echelon managing director Matthew Rimes, Mark Pearce and Clinton McGhie.
Sovereign has appointed BDO Consultants (WA) Pty Ltd as investigating accountant to the offer, which opens on November 15, with the priority offer closing on December 6 and the public offer closing on December 20.
