UK-based exploration and development company Adriatic Metals has completed an institutional placement, raising around A$75.8m ($50m) through the issuance of 18,254,838 CHESS Depositary Interests (CDIs) at A$4.15 per CDI.
The company added that the placement was backed by both existing shareholders and new institutional investors.
Concurrent with the placement, OMF Fund III (F), advised by Orion Resource Partners (UK), sold around 12.1 million existing CDIs at the offer price.
Due to strong investor demand, Orion increased the size of its sell-down from eight million CDIs to approximately 12.1 million CDIs.
Following the offer’s completion, the company will retain around 12.1 million CDIs, representing approximately 3.7% of Adriatic’s issued ordinary share capital.
Orion has also committed to a 90-day holding period for its remaining CDIs from the date of the block trade agreement, subject to certain conditions.
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The capital raised from the placement is anticipated to strengthen Adriatic’s balance sheet, support the ongoing development of the Vares Operation, and build upon recent achievements such as the production of the first saleable concentrate.
Trading of Adriatic CDIs on the Australian Securities Exchange (ASX) is expected to resume on 29 May 2024, with the settlement of the placement projected for 3 June 2024.
The newly issued CDIs under the placement are slated to be allotted and commence trading on the ASX on 4 June 2024.
Adriatic managing director and CEO Paul Cronin said: “It is a very exciting time for Adriatic and the Vares Operation following the first sale of concentrate. The Company is now focused on achieving full ramp-up by H2 2024 and delivering on the mine plan.
“We are pleased with the outcome of the capital raising and the support of our existing and new shareholders as the company advances to the next phase of operations.”
PR: https://www.investi.com.au/api/announcements/adt/f0df2e91-3df.pdf Image: https://www.shutterstock.com/image-photo/huge-excavator-loads-rock-formation-into-2293434657
