Atalaya Placing Falls Short Of Target After Raising GBP31 Million (ALLISS)

LONDON (Alliance News) - Atalaya Mining PLC on Thursday said it has raised GBP31 million from ...

Alliance News 7 December, 2017 | 11:57AM
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LONDON (Alliance News) - Atalaya Mining PLC on Thursday said it has raised GBP31 million from its placing launched at the start of this week, falling short of its GBP39 million target.

Having on Monday said it would issue up to 23.3 million new shares a price of 167 pence per share to raise GBP39 million, Atalaya said Thursday it only raised GBP31 million through issuing 18.6 million shares. Shares in the company were up 0.5% at 164.80 pence Thursday.

Notably, it had locked in subscriptions for 16.7 million shares at the time it announced the placing this week.

The new shares represent about 16% of its enlarged issued share capital, with shares being placed with new institutional investors and existing shareholders. The placing is still conditional on approval from the Toronto Stock Exchange.

After the placing, Atalaya's largest shareholder will be Trafigura Beheer BV with 30.8 million shares, holding a 22.8% stake. Other significant shareholders include Yanggu Xiangguang Copper Co Ltd with 30.7 million shares, or a 22.7% stake, Liberty Metals & Mining LLP with 19.6 million shares for a 14.5% stake, and Orion Mine Finance (Master) Fund I LP with 18.8 million shares, or 13.9%.

"The company welcomes the support from existing shareholders and new institutional investors through the placing. The funds raised will allow the company to begin executing on its 15 million tonnes per annum expansion plan immediately," said Chief Executive Alberto Lavandeira.

It plans to put the funds towards the expansion of Proyecto Riotinto, which it said will require investment of around EUR80.4 million.

The expansion is planned to increase copper production, improve operational efficiencies, reduce maintenance requirements, and lower its operating cash costs. It aims to increase processing capacity to up to 15 million tonnes per annum, which Atalaya said correlates to an estimated 50,000 to 55,000 tonnes of copper contained in concentrate per year.

It expects the expansion project will result in a post tax net present value of the project of around USD113 million, it said, and a post tax internal rate of return of around 43%.

By Joshua Warner;

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Atalaya Mining PLC 211.50 GBX -0.70 -
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