Cudeco (ASX:CDU) has picked up $20 million to ease market volatility via an institutional investor. The company has issued 10 million new shares at the rate of $2 each to the investor. The announcement made Cudeco shares rise by 12 cents, closing the week out at $2.15 per share.
The investor has not been identified by the company other than calling them a sophisticated global investor. The new shareholder has British and U.S. offices and now holds 6.84 % of Cudeco. It was also a client of Morgan Stanley Smith Barney. The identity of the investor will be revealed to the stock market in the next few days.
The Cudeco company is developing the Rocklands copper project near Cloncurry. Azure Capital, the Perth based boutique investment bank is the lead manager for the placement. Cudeco boss Wayne McCrae said that Azure Capital had identified that Cudeco's share register is currently dominated by retail investors and this has contributed in part to the recent volatility in the share price. Taking on the institutional investor will stabalize the company's share price.
In late 2005 the company purchased a mining tenement known as EPM 13049 which covers an area of some 2200 hectares. The EPM encompasses numerous old historical copper mines which have over the past 100 years produced exceptionally high grade copper ore and the company has been focusing on proving up this world class copper / Cobalt and Gold resource property which is now widely known around the globe as Rocklands.