MINMETALS RESOURCES LIMITED ("MMR") ANNOUNCES CLOSE OF US$500 MILLION EQUITY RAISING

Share Placement is pursuant to the Specific Mandate granted on 9 December 2010

HONG KONG, April 19 /CNW/ - Minmetals Resources Limited ("MMR") today announced the successful completion of a US$500 million share placement.

The considerable global market uncertainty largely created by Standard & Poor's decision to place a negative credit rating outlook for the USA, which was announced after the book build process for MMR's equity raising had already commenced, led to the raising being restricted to US$500 million. At this level, the raising closed oversubscribed.

The terms of the placement are:

  • HK$5.10 per placing share, representing a discount of approximately 13% to the closing price of HK$5.89 per share quoted on the Hong Kong stock exchange on 18 April 2011.
  • The 762,612,000 placing shares represent approximately 25.70% of MMR's issued share capital as at the date of the this announcement and 20.45% of MMR's issued share capital as enlarged by the Placing Shares.

Andrew Michelmore, Chief Executive Officer MMR, said: "Regardless of market volatility, we are satisfied with the results of the share placement.  As stated in our latest earnings announcement, our operations are generating strong levels of cash and with this additional equity we can continue to focus on development of core projects including Dugald River and pay down the loan to China Minmetals Nonferrous."

"Importantly the placement introduces a wide range of quality institutional investors to MMR's share register and more than doubles the free float of MMR shares, significantly increasing its market liquidity."

MANDATE FOR THE ISSUE OF THE PLACING SHARES
The Share Placement is allotted and issued according to the terms of the Specific Mandate granted by a resolution of the Shareholders at an extraordinary general meeting of the Company held on 9 December 2010.  The Specific Mandate authorised MMR to allot and issue up to 2,700,000,000 new shares.

This placement is the first and will be the only share placement issued under the Specific Mandate.

REASONS FOR THE PLACING AND USE OF PROCEEDS
The proceeds from share placement will be used to

  • pay down the loan of US$694 million (HK$5,414,462,726) under the Loan Agreement; and
  • continue exploration and development of the Dugald River zinc project and other exploration initiatives.

The share placement will enlarge the shareholder and capital bases of MMR, and will strengthen MMR's financial position while creating further flexibility to make investments in additional strategic opportunities.

PLACING AGENTS
Macquarie Capital Securities Limited and Morgan Stanley & Co. International plc acted as joint global coordinators together with BOCI Asia Limited, Citigroup Global Markets Asia Limited, Credit Suisse Limited and Deutsche Bank as joint book runners.

PROPOSED EQUINOX OFFER
Funding for MMR's proposed offer for all the issued shares in Equinox Minerals Ltd., which was separately detailed in an announcement to the Hong Kong Stock Exchange released on 12 April, is unrelated to this equity raising.

As previously indicated, the offer and bid circular relating to the acquisition of Equinox Minerals is expected to be issued by the end of April.

About MMR

MMR (HKEx: 1208) owns and operates a portfolio of world-class base metal mining operations, development projects and exploration fields.

The group is one of the world's largest producers of zinc as well as a substantial producer of copper, lead, gold, silver, and bauxite.

The group currently has mining operations located in Australia and Asia and a large portfolio of advanced and early stage exploration projects through Australia, Asia and North America.

MMR's operations include:

  • The Century mine in Queensland which is Australia's largest open pit zinc mine - producing some 500,000 tonnes of zinc annually.
  • The Sepon copper and gold operations in Laos which respectively produce approximately 65,000 tonnes of copper and 90,000 ounces of gold annually.
  • The Golden Grove underground base and precious metals mine in Western Australia which produces concentrates of zinc, copper and other base and precious metals.
  • The Rosebery mine in Tasmania, a polymetallic underground mine, in operation since 1936, which has current potential to extend life beyond 2030.

MMR's strategy is to maintain and expand its position as a leading internationally diversified base metals group with exposure to multiple commodities across various jurisdictions. Expansion is to be achieved through the pursuit of organic growth initiatives and value-enhancing acquisition opportunities, as well as capitalising on its status as a member of the China Minmetals Corporation group of companies.

SOURCE Minmetals Resources Limited

For further information:

Investors and analysts
Minmetals Resources Limited
Martin McFarlane
Head of Investor Relations
Phone: +1 778 987 1800
Email: martin.mcfarlane@mmg.com
Media - Hong Kong and Beijing
Kreab Gavin Anderson
Phone : +852 2523 7189
Richard Barton / Grace Zhang
Phone: +852 9308 1056 / +852 6746 8971
Email: rbarton@kreabgavinanderson.com,
gzhang@kreabgavinanderson.com
Media - North America
Hill & Knowlton Canada
Lindsay Mack
Phone: +1 416 413 4771
Mobile: +1 416 526 5388
Email: lindsay.mack@hillandknowlton.ca
Media - Australia
Kreab Gavin Anderson
Nick Maher / Miche Paterson
Phone: +61 3 9659 3000
Email: nmaher@kreabgavinanderson.com
mpaterson@kreabgavinanderson.com

Profil de l'entreprise

Minmetals Resources Limited

Renseignements sur cet organisme


FORFAITS PERSONNALISÉS

Jetez un coup d’œil sur nos forfaits personnalisés ou créez le vôtre selon vos besoins de communication particuliers.

Commencez dès aujourd'hui .

ADHÉSION À CNW

Remplissez un formulaire d'adhésion à CNW ou communiquez avec nous au 1-877-269-7890.

RENSEIGNEZ-VOUS SUR LES SERVICES DE CNW

Demandez plus d'informations sur les produits et services de CNW ou communiquez avec nous au 1‑877-269-7890.