Mindoro Resources Ltd. (TSX VENTURE:MIO) (FRANKFURT:WKN 906167) today announced that it has closed the prospectus offering in Australia, oversubscribed, having raised A$8,000,000 from the sale of 40 million CHESS Depository Interests issued at a price of A$0.20 each.
- A$8 million from Australian prospectus offering and C$2 million received from IFC
- Institutional shareholders subscribe for over 50 percent of the concurrent offerings
- Conditional approval received to list on the ASX
Mindoro has conditional approval from the Australian Securities Exchange ("ASX") to list the CDIs on the ASX. Each CDI will be equivalent to and exchangeable for one common share in the Company. The CDIs will commence trading on the ASX on or around 7 December, subject to final approval from the ASX (ASX:MDO).
As compensation for underwriting the offering, Mindoro will pay E.L. & C. Baillieu Stockbroking Ltd. a commission of five percent of the gross proceeds of the Australian offering.
Institutional shareholders Lion Selection Group, Asian Lion Ltd and Acorn Capital Limited managed Microcap Investment Trusts invested a total A$3,000,000 and Mindoro insiders invested a total of A$310,000 through the prospectus offering. Lion Selection Group also exercised four million warrants raising an additional C$600,000.
In addition the Company closed the concurrent private placement having received C$2,000,000 through the issue of 10 million shares to the IFC, a member of the World Bank Group.
Mindoro has issued 50 million shares pursuant to the prospectus and private placement offerings which are subject to a four-month statutory hold period in Canada and cannot be resold into Canada during such period, unless an exemption is available from the applicable prospectus requirements in Canada. However, the CDIs will be tradable on the ASX upon listing. The four million shares issued pursuant to the exercise of warrants are not subject to any hold period.
The net proceeds of the two offerings will be used to advance pre-feasibility and feasibility studies for a staged and integrated nickel processing operation at the Company's Agata Project; to further increase the nickel resource through drilling the regional Exploration Target, and to advance the portfolio of gold and copper-gold projects through drilling.
Mindoro President and CEO Jon Dugdale stated: "Through the support of our institutional shareholder base, which invested more than 50 percent of the total offering, and a new set of investors, the funds raised will allow Mindoro to press ahead with the feasibility study program into an integrated nickel project at Agata. The funds will also enable continued drilling of the exploration targets with the objective of growing the resource base to support a major new nickel project development in the Philippines. In addition the company will review and drill test its outstanding portfolio of drill-ready gold and copper-gold prospects".
Source: Mindoro Resources Ltd.