Windimurra Vanadium Ltd is set to launch a $54.8 million rights issue to fund planned development at its namesake project in Western Australia's Mid-West region.
Windimurra Vanadium Ltd is set to launch a $54.8 million rights issue to fund planned development at its namesake project in Western Australia's Mid-West region.
The announcement coincides with the resignation of company founder and director Roderick Smith, who sold his stake in the company, formerly Precious Metals Australia, late last year to pursue a professional career in London.
The latest capital raising is on the basis of one new share for every three shares, and will result in approximately 34.2 million new ordinary shares being issued.
The issue price of $1.60 per share represents an 8.57 per cent discount to yesterday's 14 day volume weighted average price of $1.75 per share.
The entitlement issue, which is scheduled to be completed in February 2008, will be fully underwritten by Euroz Securities Limited and fully sub-underwritten by the Michael Kiernan chaired Territory Resources Ltd, which is already a significant shareholder.
The Windimurra announcement followed this week's completion of Territory's $27.5 million share placement to clients of Euroz Securities.
Territory has recently acquired shares in several associated companies, including Windimurra Vanadium, Matilda Minerals and Olympia Resources.
Windimurra managing director Iain Scott said the underwriting of the equity raising demonstrated the market's support for its flagship vanadium project.
"The non-renounceable entitlement provides shareholders with the opportunity to increase their investment in Windimurra as the company approaches first production in the last half of 2008," Dr Scott said.
Mr Scott said the company was close to concluding the debt financing arrangements for the construction of the project.
Both Merrill Lynch and Noble Group, key supporters of the Windimurra project, had demonstrated their confidence in the world class vanadium project by indicating their intention to participate in the syndicated debt, he said.
A further announcement on the debt placement is expected to be made next week.
Over the past six months, Windimurra has achieved a number of major milestones in development of the project including the signing of a 10 year, $300 million contract with Mineral Resources to build, own, operate and transfer the beneficiation plant.
Windimurra has also successfully gained the project's principal environmental approvals, and signed the EPCM contract with Proteus Engineers for the roasting and refinery sections of the plant.
