$50M RAISED ALL WE NEED TO FINISH JOB, SAYS CUDECO
Written on the 4 May 2015 by Nick Nichols
COPPER miner CuDeco (ASX:CDU) raised what it says is the last of the funds needed to finalise capital works at its Rocklands project and to fund its proposed listing on the Hong Kong Stock Exchange.
The Gold Coast-based company, headed by Wayne McCrae, has raised $50 million from Focus Sun Holdings (FSH) after issuing 40 million share at $1.25 each to the Chinese investment company.
The announcement led to CuDeco's shares being reinstated to the Australian Securities Exchange after a three-month voluntary suspension sought by the company in order to finalise the funding deal.
CuDeco shares dropped sharply after being reinstated to the ASX, although they remained above the price of the share issue to Focus Sun Holdings, trading just below $1.30.
More than 2.1 million shares changed hands as CuDeco dropped to a low of $1.25 from a previous close of $1.41.
CuDeco says the share issue is subject to approval from both the Foreign Investment Review Board and from CuDeco shareholders, but the company has already received a $5 million advance on the deal. The remaining $45 million will be received once approvals have been acquired.
The finance deal also gives Focus Sun Holdings the chance to pick up more of CuDeco over the next two years through an attached options deal. The investor has been given 20 million CuDeco options exercisable at $1.25.
Once exercised, this will give Focus Sun Holdings the right to appoint a director to the CuDeco board.
CuDeco says a further $1.5 million has been raised after it issued another 1.2 million shares at $1.25 each to an undisclosed third party that introduced Focus Sun Holdings to the company's share register.
CuDeco says the Rocklands project, located near the north-west Queensland township of Cloncurry, is due for commissioning in July-August this year.
Gold Coast Business News has contacted McCrae for further comment.
Author: Nick Nichols