Metals exploration raises US$57.7 million to fund the Runruno mine construction
02 May 2013
Kerman & Co. LLP acted for long standing client, Metals Exploration PLC (the “Company”), who raised approximately US$57.7 million (before expenses) through the subscription of a total of 545,033,044 ordinary shares of 1p each in the Company (“Placing Shares”) at a subscription price of 7 pence per new ordinary share (the "Placing") by certain existing shareholders.
Subject to the passing of shareholder resolutions at a general meeting, the Placing Shares are expected to be allotted and issued in three stages on or about 22 April 2013, 17 June 2013 and 14 October 2013. The resolutions were all duly passed on 22 April 2013 and the first tranche of the Placing Shares were admitted to trading on AIM on 29 April 2013.
The subscription price of 7 pence per new ordinary share represents an 8 per cent. premium to the closing mid-price of 6.5 pence per ordinary share as at 18 March 2013, and a 29 per cent. discount to the 1-year average closing mid-price of 9.8 pence per ordinary share.
In conjunction with the Placing, the Company will seek to raise approximately US$70 million in debt and it is intended that the debt funding will be available by the end of 2013. The Company expects that following receipt of funds from the Placing and the proposed debt funding, it will have in place sufficient capital to complete the construction of the mine at its Runruno Project and finance the acquisition of a mining fleet for post construction operations at Runruno.
The Company’s principal asset is the Runruno Gold-Molybdenum Project on the island of Luzon in the northern Philippines.
Ian Holzberger, Executive Chairman, commented:
"I am delighted with the support our shareholders have provided us and that we have been able to procure this financing proposal, in the face of a difficult global outlook for both equity and debt funding. We now look forward to moving forward into the full construction phase and securing the debt funding to move us towards completion. "
Joan Yu, Partner led the Kerman & Co Corporate Team supported by Norah Mugambi, Associate.