Cobar copper miner Metals Acquisition (ASX:MAC) raised a little more than it planned in Wednesday’s placement.
It was looking for around $140m. But MAC told the ASX on Thursday it in fact had raised $150m before costs (around US$103m instead of the original US$96m).
The issue was made at a price of $18 a CDI (Chess Depositary Interest), a 13% discount to the market price of around $20.70
MAC said the placement "was well supported with support from new and existing institutional and sophisticated investors both in Australia and offshore, which is testament to the high-quality nature of the CSA Copper Mine and the significant work that has been undertaken by management to deliver on a range of operational improvements over the past year.”
The proceeds will be used to repay the company’s expensive mezzanine debt facility as soon as possible. That will leave it room to move to some low key “unorganic growth opportunities” which is bizspeak for M&A work.
There are a handful of other miners operating in the Cobar region with attractive copper or zinc assets. MAC has a deal with PolyMetals, for example, covering water and Poly’s Endeavour mine and processing plant, which MAC wants to be able to access.
MAC shares traded down to $18.27 by midday Thursday – just above the issue price and giving those shareholders who took the placement a small gain.