Metals X Limited has successfully received firm commitments from a combination of existing shareholders and new high-quality institutional investors to subscribe for approximately $50 million (AUD) of new fully paid ordinary shares in the company.
This means that Metals X will be able to support the ramp-up of the Nifty Copper Operation in the East Pilbara region, ramping up towards their targeted annual production rate of 40,000 tonnes of copper in concentrate. The funding will also provide increased exploration within the Renison Tin complex in Tasmania. The funds will further be allocated to advance other development projects such as the Maroochydore Copper Project, the Renison Tailings Retreatment Project (Rentails) and the world-class Wingellina Nickel-Cobalt Project.
“We are very pleased not only to have received the strong support of our major shareholders but also to welcome several additional high-quality institutions onto the register as part of the Placement. The company’s priority remains the ramp-up of Nifty which the Placement supports, but the funds raised also provide us with the balance sheet strength to accelerate and deliver on our impressive pipeline of growth projects across the copper, tin and nickel divisions,” commented Metal X’s Managing Director, Mr Warren Hallam, earlier this morning.
A few days prior to this announcement, Mr Hallam also commented that the company had experienced exceptional growth opportunities, but still needed the financial flexibility to achieve strategic growth objectives.
“Metals X, as an established copper and tin producer, is well positioned with its growth portfolio of short, medium and long-term opportunities to generate strong cash flows with long-life mines. Given the recent volatility in copper price and the slower than expected ramp-up at Nifty, as previously announced, we considered it prudent to further strengthen our balance sheet to provide additional financial flexibility for our producing operations while accelerating our exploration, growth and development projects,” he announced on 31 July 2018.
The Placement Shares will be issued at a fixed price of $0.65 per share.
More information on this announcement can be accessed here.