Deal finances feasibility study and development of Torrecillas Project
By Devika Patel
Knoxville, Tenn., March 4 - Mundo Minerals Ltd. said it negotiated a "heavily oversubscribed" private placement of stock. It is raising A$10 million via lead manager Patersons Securities Ltd.
The company will sell 80 million ordinary shares at A$0.125 per share, a 10.71% discount to A$0.14, the closing share price on March 3. The shares will be sold in two tranches, with 28.2 million shares settling in the first tranche and 51.8 million shares being sold in the second.
Proceeds will be used to complete the current definitive feasibility study and secure financing for a full-scale commercial development of the high-grade Torrecillas Project in Peru, provide additional working capital and fund major resource development drilling programs.
"The board has embarked on this capital raising after taking into consideration a number of different funding alternatives to progress the company to the next level of growth and development. While the raising will result in some dilution to existing shareholders, we believe that the benefits of introducing several leading U.S. investment funds - several with more than $4 billion in funds under management - to our register far outweigh any downside," chief executive officer John Langford, said in a press release.
Mundo Minerals is a gold explorer in West Perth, Australia.
| Issuer: | Mundo Minerals Ltd.
|
| Issue: | Ordinary shares
|
| Amount: | A$10 million
|
| Shares: | 80 million (28.2 million in the first tranche)
|
| Price: | A$0.125
|
| Warrants: | No
|
| Manager: | Patersons Securities Ltd. (lead)
|
| Pricing date: | March 4
|
| Settlement date: | March 9 (for A$3,525,000)
|
| Stock symbol: | Australia: MUN
|
| Stock price: | A$0.135 at close March 4
|
| Market capitalization: | A$27.19 million
|
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