29Metals (ASX:29M) is raising $150 million through a non-renounceable entitlement offer, fully underwritten by Macquarie Capital under an accelerated pro rata ratio of one for 3.66.
The offer will issue around 375 million shares at $0.40 per share. The issue price represents a 35.5% discount to the last closing price on 19 January, and a 26.6% discount to the 30-day volume weighted average price of $0.55.
Shares issued will represent 27.3% of the current issued capital of 29Metals.
BUMA recently entered a purchase agreement with Macquarie Capital for joint lead managers to conduct a bookbuild and seek institutional and sub-underwriting demand.
BUMA is a substantial shareholder of 29Metals, which alongside AustralianSuper has committed to take up entitlements and subscribe for $29.2 million and $26.8 million respectively. This will result in a pro forma holding of 20% for BUMA and 18% for AustralianSuper.
29Metals Directors also intend to participate in the entitlement offer.
The institutional entitlement offer will close on 20 January before shares are settled on 29 January, followed by the retail entitlement offer, which will close on 11 February, with shares to settle on 17 February.
CEO James Palmer says the company has orchestrated a “clear plan to recommence mining at Xantho Extended in April 2026”.
“In the meantime, this equity raising is expected to allow us to maintain our commitments to our strategic growth objectives to accelerate value realisation across the portfolio,” Palmer says.
“Specifically, the ongoing investment in Gossan Valley, progression of a restart Definitive Feasibility Study at Capricorn Copper and drilling to test priority exploration targets across the portfolio.”
29Metals is a base and precious metals mining company focused on its assets in Australia and Chile.
Write to Maddison Elliott at Mining.com.au
Images: 29 Metals
