AFR article on Mincor Trading Halt - a capital raising
AFR Street talk
Mincor cashes in on nickel run with $60m raising
Anthony Macdonald and Yolanda Redrup
Sep 6, 2021 – 9.38am
Here’s another one for Andrew Forrest!
ASX-listed nickel group Mincor Resources, where Forrest has a 15 per cent stake, is seeking to raise $60 million at $1.28 a share in a deal via Aitken Murray Capital Partners and EurozHartleys.
Andrew Forrest’s Squadron Resources owns a 15 per cent stake in Mincor Resources. Bloomberg
The deal was split into a $55 million share placement and $5 million SPP, both at the same price.
The brokers were calling for bids into the placement by 5pm Monday, according to terms sent to potential investors.
The deal was at an 11.1 per cent discount to the last close and a 5.6 per cent discount to the 10-day VWAP, the term sheet said.
Funds raised were to construct a camp at its Cassini operations, potentially increase exploration activity in the 2022 financial year and replace an existing $55 million project finance facility with BNP Paribas and Societe Generale.
Interestingly Mincor Resources’ two biggest shareholders are Forrest’s Squadron Resources and ASX-listed IGO Ltd, the two groups also maneuvering around another nickel play, Western Areas.
Mincor Resources shares went into a trading halt on Monday morning. The company was expected to resume trading on Wednesday, according to terms sent to potential investors.
The raising comes with the group’s shares at a 10-year high. Mincor Resources most recently raised equity in June last year, when it picked up $50 million in a placement at 72¢ a share.
