Global Alumina will settle $100 million private placement in two tranches

By Sheri Kasprzak

New York, Sept. 30 - Global Alumina Corp. said it plans to close its previously announced $100 million private placement in two separate tranches.

In the first tranche, the company will sell 25 million shares at $2.00 each to Emirates International Investment Co. LLC.

In the second tranche, Emirates International will buy a $50 million convertible debenture. As previously reported, the 10% debenture matures in five years and is convertible into common shares at $2.50 each.

"By completing this financing in two tranches, the company is able to better match its capital inflows with its expenditure requirements and avoid paying interest on the debenture until the proceeds are required," said Michael Cell, the company's chief financial officer, in a statement.

Closing of the two tranches remains contingent upon the closing of a $200 million private placement with Dubai Aluminium Co. Ltd. Global Alumina said in a statement that it anticipates the second tranche of the deal to be completed in early December.

The proceeds from the $100 million deal will be used to add to the $700 million the company must raise to close the $200 million private placement. The proceeds from that deal will be used to develop and construct an aluminum refinery.

SW Source Capital was the placement agent.

Based in Toronto, Global Alumina is a bauxite exploration company focused on aluminum production.

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