Underwritten deal to finance Kanmantoo copper/gold mine to production
By Devika Patel
Knoxville, Tenn., Oct. 29 - Hillgrove Resources Ltd. said it will sell 260 million shares at A$0.25 apiece in a fully underwritten private placement.
The company will raise A$65 million by selling the shares at a 16.67% discount to the Oct. 28 closing share price of A$0.30 and a 16.7% discount to the five-day volume-weighted average price of the shares.
The shares will be sold in two tranches, with 58.2 million shares sold for about $14.55 million in an initial unconditional tranche, and the remaining 201.8 million shares sold for A$50.45 million in a second tranche that is conditional upon the company obtaining shareholder approval at a meeting on Dec. 3.
J.P. Morgan and Wilson HTM are the joint lead managers and joint underwriters, and J.P. Morgan is the bookrunner.
Proceeds will be used to fund the Kanmantoo copper/gold mine in South Australia through to production, to fund exploration activities at Hillgrove's Indonesian projects and to fund other general corporate expenses.
Based in Sydney, Australia, Hillgrove is a mineral explorer.
| Issuer: | Hillgrove Resources Ltd.
|
| Issue: | Shares
|
| Amount: | A$65 million
|
| Shares: | 260 million
|
| Price: | A$0.25
|
| Warrants: | No
|
| Managers: | J.P. Morgan and Wilson HTM (joint leads)
|
| Pricing date: | Oct. 29
|
| Stock symbol: | Australia: HGO
|
| Stock price: | A$0.30 at close Oct. 29
|
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