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Name | Symbol | Market | Type |
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IQ Merger Arbitrage ETF | AMEX:MNA | AMEX | Exchange Traded Fund |
Price Change | % Change | Price | High Price | Low Price | Open Price | Traded | Last Trade | |
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0.005 | 0.02% | 32.145 | 32.18 | 32.11 | 32.15 | 17,459 | 18:04:54 |
RNS Number:9120Q Monterrico Metals PLC 15 October 2003 For Immediate Release: 07.00am, 15 October 2003 MONTERRICO METALS PLC Placing and Open Offer of 8,068,427 new Ordinary Shares of 10p each at 135p per share Monterrico Metals plc ("Monterrico" or the "Company") today announces a proposed placing and open offer to raise #10.9 million (before expenses). HIGHLIGHTS * Proposed placing and open offer to raise #10.9 million (before expenses) * Proceeds to fund the feasibility study for the Rio Blanco Project * Offer price at a substantial premium to float price in June 2002 * Placing and Open Offer underwritten by Collins Stewart Limited - Nominated Adviser and Broker to the deal Commenting on the fundraising, Chris Eager, Chief Executive said: "Considerable progress has been made since our successful flotation: most notably we have recently completed all the components of the pre-feasibility studies for the Rio Blanco Project and are in the process of compiling the final document. In addition, we should not forget the advances made at our other prospects in Peru where we have signed 2 letters of agreement for drill commitments at the Pico Machay and Conaviri gold prospects. This fundraising will enable us to complete the definitive feasibility study of the Rio Blanco Project and to allocate further financial resources to certain other prospects." For further information, please contact: Monterrico Metals plc Tel: +44 (0) 207 448 5088 Chris Eager, Chief Executive Officer Bankside Consultants Limited Tel: +44 (0) 207 444 4140 Keith Irons Ambrian Partners Limited Tel: +44 (0) 208 528 1456 Richard Chase Proposed Placing and Open Offer Introduction Monterrico Metals plc is intending to raise approximately #10.2 million (net of expenses) by way of a Placing and Open Offer of 8,068,427 new Ordinary Shares. The Placing and Open Offer is fully underwritten by Collins Stewart. Background to, and reasons for, the Placing and Open Offer The Company was admitted to trading on AIM in June 2002 and simultaneously raised #3.0 million (before expenses) which was primarily used to finance the pre-feasibility study for the Rio Blanco Project. In addition, the Company raised a further #1.0 million (before expenses) in April 2003 which enabled it to increase its interest in the Rio Blanco Project to 100 per cent. These placings were carried out at 54 pence per share and 75 pence per share respectively. Considerable progress has been made since flotation in developing the Company's mining assets. In particular, Monterrico has: * completed all components of the pre-feasibility studies for the Rio Blanco Project; * published an independent initial resource estimate of the Henry's Hill prospect at the Rio Blanco Project; * purchased from Torre International Holdings Inc., a company in the Gitennes Exploration group, their interest in the Rio Blanco Project which has enabled the Group to consolidate a 100 per cent. interest in the project; * entered into a letter agreement with Newmont Peru Limited ("Newmont") for the drilling and, if successful, subsequent development of the Company's Conaviri gold interests; and * entered into a letter agreement with Calipuy resources Inc. for the drilling and, if successful, subsequent development of the Company's Pico Machay gold interests. The Company has now completed all the components of the pre-feasibility studies for which the majority of funds raised at the time of flotation, in June 2002, were earmarked. It was disclosed at that time that, the Company would require further equity funding to progress to the full feasibility study and hence the reason for this Placing and Open Offer. The Rio Blanco Project Introduction The Rio Blanco Project, the Company's principal asset, is a copper-molybdenum porphyry located in northern Peru covering an area of some 6,472 hectares. Several prospective target areas have been identified within the limits of the concessions, of which the Henry's Hill area is the most advanced. Resource estimate The Company has conducted extensive resource definition drilling at the Rio Blanco Project. Based on the results of this programme, an independent estimate, previously announced by the Company, shows that Henry's Hill contains combined (indicated and inferred) resources as set out in the table below: cut-off combined resource indicated resource inferred resource (% copper) tonnes ('000) grade tonnes grade tonnes grade (%) ('000) (%) ('000) (%) 0.70 176,700 0.98 161,000 0.98 15,700 0.98 0.50 662,200 0.69 476,300 0.72 185,900 0.63 0.30 1,071,700 0.58 723,100 0.61 348,600 0.52 The resource at Henry's Hill includes higher-grade material within this larger mineralised envelope containing 65 million tonnes grading 1.26 per cent. copper. Furthermore, the Henry's Hill target remains open in several directions and a follow-up programme of drilling is designed to test the continuity and extensions of the copper mineralisation in order to further quantify and possibly amplify the resource potential. Pre-feasibility studies - preliminary conclusions The Directors have commissioned independent consultants to carry out pre-feasibility studies for the Henry's Hill prospect at the Rio Blanco Project. The studies included investigations into: * baseline environmental monitoring; * social and sustainable development programmes; * mineral resource estimates from diamond drilling; * metallurgical testwork; and * process options, design and costing; These studies considered four process options for copper extraction. The preferred scenario is to build a 10 million tonnes per annum copper concentrator to produce in excess of 90,000 tonnes per annum of copper over a 20 year mine life. The pre-feasibility estimate of the capital requirement is approximately US$190 million and an operating cost estimate of 50 cents per pound of copper produced. This route was demonstrated to have the best balance between technical risk and financial return. Based on the preliminary findings of these independent reports, the Directors are confident that, based on current copper prices, the Rio Blanco Project has the potential to be developed into an economic copper mining operation. Accordingly, the Directors propose to complete a definitive feasibility study within the next 18 months. Use of proceeds The net proceeds from the Placing and Open Offer (amounting to approximately #10.2 million) will predominantly be used to fund the feasibility study for the Henry's Hill prospect which forms part of the Rio Blanco Project. The main areas of expenditure will be: * resource definition drilling; * metallurgical testwork; * infrastructure planning; * engineering design; and * environmental and socio-economic impact studies. In addition approximately #0.5 million will be used towards advancing additional prospects and #1.0 million will be used to fund the continuing overheads of the Company. Details of the Placing and Open Offer The Company is proposing to raise approximately #10.2 million net of expenses, by way of a Placing and Open Offer of 8,068,427 Offer Shares. The Placing and Open Offer is being underwritten by Collins Stewart. The Open Offer is made by Collins Stewart on behalf of Monterrico Metals plc. Qualifying Shareholders may subscribe for Offer Shares pro rata to their shareholdings on the Record Date on the basis of: 2 Offer Shares for every 3 existing Ordinary Shares held at the close of business on the Record Date at a price of 135p per share. Fractional entitlements to Offer Shares will be aggregated and allotted to Placees under the Placing for the benefit of the Company. The Offer Shares must be paid for in full on application, which must be lodged not later than 5 November 2003. To the extent that the Offer Shares are not taken up under the Open Offer they will fall to be allotted to Placees under the Placing. Qualifying Shareholders should be aware that the Open Offer is not a rights issue and that Offer Shares not applied for under the Open Offer will be allotted to Placees under the Placing for the benefit of the Company. The Application Form is not a document of title and cannot be traded or (save to satisfy bona fide market entitlements) transferred. The Offer Shares will, when issued, rank pari passu in all respects with the Existing Issued Ordinary Shares, including the right to receive all dividends and other distributions declared, made or paid on or after, or by reference to a record date on or after, the date of their issue and will be issued free of all liens, charges and encumbrances. Application will be made for the Offer Shares to be admitted to trading on the Alternative Investment Market of the London Stock Exchange ("AIM"). It is expected that Admission will become effective and dealings in the Offer Shares will commence on AIM on 10 November 2003. Availability of the Prospectus Copies of the Prospectus are available free of charge from the Company's registered office and at the offices of Collins Stewart Limited, during normal business hours on any weekday (Saturdays, Sundays and public holidays excepted) and will remain available for at least one month after Admission. Extraordinary General Meeting An extraordinary general meeting of the Company has been convened for 11.00 am on 7 November 2003. Full details of this are to be found in the Prospectus. Directors' intentions Christopher Eager and James Mancuso have irrevocably committed not to take up their rights under the Open Offer in respect of their own shareholdings, equivalent to a total of 1,401,666 Offer Shares, representing 17.38 per cent. of the Company's existing issued share capital. Raymond Angus has irrevocably committed to take up 20,000 Offer Shares and not to take up his remaining entitlement to 788,333 Offer Shares. Frederic Haller has irrevocably committed to take up all of his entitlement (amounting to 61,728 Offer Shares) and has been allocated 370,370 Offer Shares in the Placing, of which 296,296 are subject to clawback. Recommendation Your Directors consider that the Placing and Open Offer is in the best interests of the Company and the Shareholders taken as a whole. Accordingly, your Directors unanimously recommend you to vote in favour of the Resolutions to be proposed at the Extraordinary General Meeting. The Directors have irrevocably undertaken to vote in favour of the Resolutions in respect of their own beneficial holdings of 3,407,593 Ordinary Shares held at the date of this document representing approximately 28.16 per cent. of the Company's issued ordinary share capital. Timetable 2003 Record Date for the Open Offer close of business on 13 October Latest time and date for splitting (to satisfy bona fide market claims only) 3.00 pm on 3 November Latest time and date for receipt of Forms of Proxy 11.00 am on 5 November Latest time and date for receipt of Application Forms and payment in full under the Open Offer 3.00 pm on 5 November Extraordinary General Meeting 11.00 am on 7 November Dealings on AIM expected to commence 8.00 am on 10 November CREST member accounts credited 10 November Expected date of despatch of definitive certificates 17 November This information is provided by RNS The company news service from the London Stock Exchange END IOENKPKKDBDKQKD
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