Business
Placing to raise approximately US$57.7m
Placing to raise approximately US$57.7m.
About this update from Metals Exploration Plc
[{"type":"text","content":"\n \nRNS Number : 9018A Metals Exploration PLC 26 March 2013 \n \n\n26 March 2013\n \nMetals Exploration Plc\n \n(\"Metals Exploration\" or the \"Company\")\n \nPlacing to raise approximately US$57.7 million of equity towards funding of the Runruno mine construction\n \nMetals Exploration is pleased to announce that it has obtained commitments to raise approximately US$57.7 million (before expenses) via the issue of a total of 545,033,044 new ordinary shares of 1 pence each in the Company (the \"Placing Shares\") at a price of 7 pence per new ordinary share, from certain existing shareholders (the \"Placing\"). The Company has entered into discussions to raise approximately US$70 million in debt funding for the purposes of constructing its Runruno gold mine.\n \nA circular (the \"Metals Exploration Circular\") will shortly be posted to shareholders to provide further information on the Placing and to seek the necessary authorities from shareholders to allot and issue the Placing Shares. \n \nThe Company also announces that it plans to raise up to approximately €4.5 million through an Open Offer of approximately 55 million new ordinary shares of 1 pence each in the Company (the \"Open Offer Shares\") at a price of 7 pence per new ordinary share (the \"Open Offer\"). Those shareholders participating in the Placing have agreed to provide the Company with irrevocable undertakings not to take up their respective rights under the Open Offer. A circular relating to the Open Offer will be posted to Shareholders in the next few weeks.\n \n1. Background to and reasons for the Placing \n \nAs previously announced, the Company has been seeking to arrange funding for the development of its Runruno Project throughout 2011 and 2012. \n \nIn 2011, the Company appointed an experienced global investment bank to advise on the debt funding for the project and the Company has made a number of announcements regarding its progress.\n \nAs previously communicated to Shareholders, sourcing of a preferred provider, negotiation of a term sheet, completion of due diligence and full documentation proceeded throughout 2012. However, these negotiations encountered difficulties in July when the preferred provider sought to vary the agreed commercial terms materially and introduce new conditions which, in ...