Share Placement is pursuant to the Specific Mandate granted on 9
HONG KONG, April 19 /CNW/ - Minmetals Resources Limited ("MMR") today
announced the successful completion of a US$500 million share
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
"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
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
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
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
As previously indicated, the offer and bid circular relating to the
acquisition of Equinox Minerals is expected to be issued by the end of
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
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
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
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