JOHANNESBURG (miningweekly.com) – LSE-listed Kenmare Resources announced on Friday that it had secured new equity commitments of $275-million, enabling the company to commence with capital restructuring and an open offer.
This offer comprised $100-million in a cornerstone placing, $145.7-million cash commitments under a firm placing, and $29.3-million under a lender underwriting. The issue price was $3.132 per new ordinary share, equivalent to 1.566c before the impact of the proposed 1 for 200 consolidation.
An open offer of up to $122.7-million would proceed at the same price as all other funds raised, a full subscription under which would reduce gross debt to nil.
Based on the agreed terms of the debt restructuring, announced in June, completion of the capital raise would reduce debt from no less than $292.5-million to no more than $100-million, providing the company with $75-million for working capital and to cover expenses.
"The capital raise and capital restructuring provides Kenmare with an excellent platform to deliver strong returns to its shareholders. The strengthening of the balance sheet, allied to falling cash costs and vastly increased power stability, allows Kenmare to benefit from the strong improvement in the titanium feedstock market we are currently experiencing," said MD Michael Carvill.
Edited by: Samantha Herbst
Creamer Media Deputy Editor
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