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GOLD Coast copper miner CuDeco (ASX:CDU) has launched an $83 million rights issue that it says will be enough to gets its Rocklands project to full production.
The company, which earlier this year ousted its colourful founder Wayne McCrae, says the offer to eligible shareholders is on the basis of one share for every two shares held, at an issue price of 60c each.
The rights issue is fully underwritten by CuDeco's three cornerstone Chinese investors - China Oceanwide International, New Apex Asia Investment and Sinosteel Equipment and Engineering - who have signed a loan agreement for an initial amount of $2 million each to the company.
"The funds raised from the rights issue will be used towards funding the construction and commissioning of the 100 per cent CuDeco-owned Rocklands Group Copper Project, repaying existing short-term shareholder loans and providing working capital for the business in order to see it through positive cash-flow," says CuDeco.
The rights issue is available to registered shareholders in Australia, New Zealand, Hong Kong and China.
The company expects around 139 million new shares will be issued and, upon completion of the rights issue, the issued capital of CuDeco will compromise more than 416 million shares.
In other news for the project, the company has announced the successful first shipment of native copper to overseas smelters.
The first container produced a final product grade of 99.67 per cent, in line with the 99.65 per cent copper resulting from native copper metal examined during the Rocklands exploration and metallurgical testing programs.
Meanwhile, Gold Coast-based executive Gerry Lambert, an appointee backed by McCrae, also announced his resignation as director today.
CuDeco shares last traded at $1.10. The shares remain in voluntary suspension.
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