Metals Acquisition, which owns the former Glencore copper mine in Cobar, western NSW, has gone to the market seeking around $A140 million to help reduce its debt.
This marks the company’s second capital raising in seven months, bringing the total amount raised from the market this year to nearly half a billion dollars.
On Wednesday, the company announced it is targeting $140 million (just over $US96 million).
Fund managers are being offered MAC CDIs (CHESS Depository Interests) at $18 each, which is $1 more than the $17 offering in March of this year when it raised $US214 million (or $A325 million).
Trading was halted on Wednesday to facilitate the placement.
In a statement, MAC noted that the placement proceeds will be used to optimize its balance sheet and reduce leverage by retiring its existing US$145 million Mezzanine Debt Facility at the earliest practicable date, while also providing additional flexibility to pursue strategic inorganic growth opportunities.
"Upon settlement of the placement, MAC will be well capitalized with a pro forma cash balance of approximately US$177 million (before costs) as of September 30, 2024 (in addition to a US$25 million revolving credit facility, which remains undrawn), and pro forma net debt of approximately US$134 million (before costs)."
The company stated that its operations at the CSA mine in Cobar continue to “perform strongly,” with Q3 2024 copper production of 10,159 tonnes at an average grade of 4% copper, and C1 cash costs expected to be in the range of US$1.90 to US$2.00 per pound.
"The company remains on track to deliver at the mid-point of its full-year 2024 copper production guidance of between 38,000 and 43,000 tonnes."
