CUDECO SWAPS SHARES FOR SERVICES

Written on the 27 November 2012

CUDECO SWAPS SHARES FOR SERVICES

CUDECO (ASX: CDU) has entered an agreement to exchange $34.2 million in shares for services from Sinosteel Equipment and Engineering.

The placement of 7.6 million ordinary shares at $4.50 per unit is in lieu of cash payments for equipment from Sinosteel, says CDU director Wayne McCrae (pictured).

“The equipment includes the entire 22Megawatt Power Station manufactured by U.S. company Cummins Power, to provide the high voltage power station for the Rocklands Copper Project,” says McCrae in a statement to the ASX today.

“The supply agreement includes the complete installation, commissioning on site, including 12 months on site support.”

The remainder of the placement is for the erection and construction of the mineral process plant.

The market reacted positively to the announcement today, with CDU shares closing 6.19 per cent up at $4.630.

CuDeco recently cancelled a $30 million capital-raising venture and decided upon the share placement with Sinosteel instead.

“The Directors elected that this share in lieu of cash option, was a better option than the recent placement that was withdrawn at $4.30 per share,” says McCrae.

The agreement with Sinosteel is binding, but subject to the Foreign Investment Review Board approval process, which is expected to be completed by the end of this year.


Latest News

2017 BRISBANE TOP COMPANIES REVEALED

WHILE Queensland is regarded as an economy in transition with the winding down of the mining boom, the 2017 top 50...

2017 BRISBANE TOP COMPANIES 1-10

FROM insurance and banking to travel, gambling, retail, property and pizza, these "heavyweights" have ha...

2017 BRISBANE TOP COMPANIES 11-20

RETAIL, property, an airline, cars, real estate, software services, energy, agriculture, veterinary services bathr...

2017 BRISBANE TOP COMPANIES 21-30

JEWELLERS Michael Hill International listed in 2016 with a half-billion dollar market capitalisation and a new CEO...

Related News

FURNITURE DISRUPTOR SET TO SHARE HIS ONE OF A KIND BUSINESS MODEL

IT'S no secret that Australians love homemaking. Their ceaseless quest to create the perfect place to call hom...

WEEDING OUT THE ASX'S BURGEONING CANNABIS TREND: 8 COMPANIES TO WATCH

A NICHE is budding on the ASX in the form of medical cannabis, an industry which has been on the country's rad...

FRESH CLASS ACTION TO REVEAL ANOTHER SIDE OF SLATER AND GORDON DOWNFALL

ACA LAWYERS has issued a formal letter of demand to Andrew Grech (pictured), managing director of Slater and Gordo...

STARSHIPS WERE MEANT TO DELIVER DOMINO'S PIZZA

NICKI Minaj may have been off the mark when she declared 'starships were meant to fly'. However, she m...

BOOK YOUR FUNCTION SPACE HERE

 

 

 

Contact us

Email News Update Sign Up Contact Details
Subscriptions

PO Box 2087
Brisbane QLD 4001

LoginTell a FriendSign Up to Newsletter