14/05/2009 - 10:02

Western Areas completes $35m raising

14/05/2009 - 10:02

Bookmark

Upgrade your subscription to use this feature.

Nickel miner Western Areas is expecting $100 million to come its way shortly after the company raised over $35 million through a slightly discounted share placement.

Western Areas completes $35m raising

Nickel miner Western Areas is expecting $100 million to come its way shortly after the company raised over $35 million through a slightly discounted share placement.

In a heavily oversubscribed placement, the company issued 7 million ordinary shares priced at $5.05 each to domestic and international institutions.

Western Areas said the placement share price was a 3.6 per cent discount to the company's closing price yesterday of $5.24.

Shares in the miner last traded down 41 cents to $4.83 at 11:36 AEST.

The placement follows a $45 million financing deal with BHP earlier this year and the recently agreed to mine access deal with Kagara which will see Western Areas initially pocket $20 milion.

Western Areas managing director Julian Hanna said the placement will support the miner's expansion plans at its Forrestania nickel project and help underpin its growth strategy.

Additionally, the Western Area's board is looking at ways to extend the due dates for its current bank debt and convertible bonds, which mature in around three years.

The placement was conducted by UBS Investment Bank and Southern Cross Equities.

 

 

The announcement is below:

 

The Board of Western Areas NL ("Western Areas") is pleased to announce Western Areas has successfully completed an ordinary share placement raising A$35.35 million through the placement of 7 million ordinary shares at an issue price of A$5.05 per share.

The issue price represents a 3.6% discount to the closing share price of A$5.24 per share on 13 May 2009.

The placement was significantly oversubscribed, with strong demand from domestic and international institutions, the majority of which were existing shareholders in the company.

Julian Hanna, Western Areas' Managing Director said: "The success of this placement will support Western Areas' rapidly expanding nickel production and help underpin the Company's growth strategy to achieve its goal to become Australia's second largest and lowest cost nickel miner".

Including the A$35.35 million raised through this placement, recently announced transactions with BHP Billiton and Kagara Ltd are expected to result in A$100 million coming into the Company. These transactions will leave Western Areas with significant cash on hand providing balance sheet flexibility, in addition to the opportunity to increase exploration activities and advance the development of Spotted Quoll and other planned mines.

Current bank debt and convertible bonds will mature in mid 2012 and the Board may look at ways to extend these dates out further than the current three years as additional Ore Reserves are added at Forrestania.

Settlement of the placement is expected to occur on 19 May 2009, with new shares allotted through the ASX on 20 May 2009 and expected to commence trading on that date. The new shares will rank equally with existing shares.

The placement was conducted by UBS Investment Bank and Southern Cross Equities.

STANDING BY BUSINESS. TRUSTED BY BUSINESS.

Subscription Options