CUDECO PUSHES AHEAD AFTER $30M INJECTION
Written on the 17 November 2015
CUDECO'S (ASX:CDU) Rocklands Copper Project is finally set to advance to full production after a $30 million equity injection by a Singapore investor.
CuDeco has confirmed a $30 million investment by Singapore-based Rich Lead Investment which will allow the mining company to push forward with the Rocklands copper mining project.
CuDeco's interim independent chairman David Taylor says the investment offers an enormous boost to the company's efforts as it moves towards becoming Australia's next copper exporter.
"The funding agreement adds to our recent logistics solution announced on November 2, demonstrating the company's ability to deliver our flagship project and maximise the benefits for all stakeholders," says Taylor.
"We have an exciting six months ahead as we release our vision of becoming the new force in copper.
"CuDeco continues to attract strong investor interest due to the value of our flagship Rocklands project.
"We can now press ahead with the completion of the construction and commissioning, delivering new jobs and other economic benefits to Cloncurry and unlocking value for shareholders."
Rich Lead will invest $30 million by way of a subscription for 37.5 million new ordinary shares at a price of 80c per share, earning an 11.9 per cent equity interest.
The issue price compares with CuDeco's last traded value of $1.10 per share.
CuDeco will still undertake a new non-renounceable revised rights Issue to all eligible shareholders which will be conducted on the basis of one new fully paid ordinary share for every four shares held, at a price of 80c per share, seeking to raise about $63 million before costs.
The rights issue was given the green light after the Takeovers Panel chose not to take action following an application by shareholder Neville Lowe voicing concern that the company's major Chinese shareholders would gain a bigger foothold on the Gold Coast-based copper miner.