CUDECO'S SHARE-TRADING DROUGHT DRAWS TO AN END

Written on the 12 April 2016 by Nick Nichols

CUDECO'S SHARE-TRADING DROUGHT DRAWS TO AN END

THE trading drought is finally drawing to a close for Gold Coast-based copper miner CuDeco (ASX:CDU) with news that the company's shares will resume trading on May 6.

The news comes on the heels of the corporate watchdog lifting a stop order on a non-renounceable rights issue that is aimed to raise $63.1 million to help fund completion of the company's Rocklands copper project near Cloncurry.

The stop order was put in place by the Australian Securities and Investments Commission in February due to concerns over disclosures in the prospectus for the rights issue.

CuDeco has revealed that the rights issue is now on track to be completed by May 3. It also has decided to open the issue solely to shareholders with registered addresses in Australia, New Zealand, Hong Kong, Singapore and China.

The one-for-four rights issue is priced at 80c a share, with three of the company's cornerstone Chinese investors indicating they will take up their full entitlement.

CuDeco's shares have remained in a trading halt since August last year, after the company's colourful founder Wayne McCrae resigned as executive chairman.

His departure was prompted by pressure from the company's major Chinese investors, namely China Oceanwide International Investment Co and Sinosteel Equipment & Engineering Co.

CuDeco shares last traded at $1.10 each, a significant premium to the rights issue's strike price.

CuDeco plans to use the proceeds of the rights issue to complete the construction and commissioning of Rocklands, to repay a short-term loan to major shareholders and for working capital.

It has engaged Australian-based Paradigm Securities as lead manager and underwriter for the revised right issue, which was originally launched in late 2015. Once completed, CuDeco will have 394.3 million in issued capital.

A feasibility study undertaken by Mining Associates earlier this year revealed the Rocklands project will generate about $2 billion in revenue over the next decade and create annual net free cashflow of $631 million for CuDeco.

The company is said to have about 2.2 million tonnes of ore stockpiled on site since it began excavations in 2012.


Author: Nick Nichols

Latest News

BRISBANE VFX PRODUCTION COMPANY CLEANS UP AT MAJOR INTERNATIONAL ADVERTISING AWARDS

AUSTRALIAN production company Alt.vfx has broken records in global advertising, becoming the first business to win...

CYCLONE DEBBIE FORCES MINE, RAIL AND PORT CLOSURES AS IT WREAKS HAVOC IN QUEENSLAND

COAL and gold mines in north and central Queensland are being seriously impacted as Cyclone Debbie makes landfall ...

FLYING START TO 2017 PASSENGER NUMBERS FOR GOLD COAST AIRPORT

RECORD numbers of travellers used the Gold Coast Airport (GCA) in January this year, continuing a five-year trend ...

SUNCORP SAYS IT'S 'COVERED' AGAINST FINANCIAL COST OF CYCLONE DEBBIE

INSURER Suncorp (ASX: SUN) says it is "well protected" against the financial impact of Cyclone Debbie th...

Related News

RAY OF HOPE FOR SLATER AND GORDON AS LENDERS STEP IN

EMBATTLED law firm Slater and Gordon (ASX: SGH) has announced to the ASX that it has launched confidential discussion...

SPROUTX PROVIDES THE SEED FOR AGTECH STARTUPS

AGTECH innovation fund SproutX has opened applications for its first accelerator round, backed by $10 million from...

GAS PRICES MAY FORCE BRICKWORKS TO TAKE MANUFACTURING OVERSEAS

BRICKWORKS Limited (ASX:BKW) chairman Robert Millner says soaring energy prices may force the company to turn to offs...

CHINA CONTINUES TO COLLECT AUSSIE PROPERTY ASSETS

CHINESE coin continues to dominate Australia's offshore real estate investment market, accounting for almost h...

EVENTS COMING UP

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter