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MINING company Cudeco Limited (CDU) will seek to raise up to $20 million in a placement offer with an institutional investor.
The company has placed 10 million shares at $2 per share with an internatrional global investor as it moves to the next stage of its copper project Rocklands, near Cloncurry in north Queensland.
Cudeco hopes that by having a large instiutional investor on its roster that it will stabilise recent volatility in its shareprice which dropped to a low of $2.05.
The company has also withdrawn its $200,000 legal suit against online stock forum HotCopper for allegedly false and misleading comments.
HotCopper announced it received a notice of discontinuance in a fax from Cudeco’s legal representative, without any reasons given for the decision.
But in an announcement to the ASX, Cudeco chairman Wayne McRae did not rule out potential for a future case against HotCopper, although the board has decided to withdraw due to ‘time constraints’.
“The company is currently fully committed to its transition from copper explorer to copper producer and has made the decision to discontinue proceedings at this time due to the commitment of time required for this project,” he says.
“The company will reassess its position in relation to this matter at a more convenient time for the company.”
Last month McCrae confirmed a major class action on behalf of shareholders against the stock blog for what he claimed were 'misleading and deceptive conduct' under the Trade Practices Act.
It is believed two bloggers posted misleading comments on the site regarding CuDeco’s Rocklands’ project.
CuDeco shares closed today at $2.20.
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