CAPITAL MARKETS

OM Holdings taps market for $72.5M

OM Holdings is looking to raise $A72.5 million to fund the development of its Sarawak ferroalloy ...

Lauren Barrett
OM Holdings taps market for $72.5M

Announcing the equity capital raising to the share market today, OM Holdings said the entitlement offer would consist of a three for 10 non-renounceable offer of new ordinary shares in OM to eligible shareholders at 40c per new share.

The entitlement offer represents a 9.1% discount to the company’s last traded share price and a 7.8% discount to the eight-day volume weighted average price.

OM said the offer had already garnered support by a number of its major shareholders.

The company plans to use the funds to finance development activities at its Sarawak project and to pay the costs of the entitlement offer.

The Sarawak project is being developed by OM Materials, a joint venture company owned by OM (80%) and Cahya Mata Sarawak (20%).

The project is expected to produce about 575,000 tonnes per annum of ferroalloys for the Asian and global steel markets from the first half of 2014, with full ramp up flagged for mid-2015.

The project will be 70% debt financed by a consortium of international and regional banks, with initial indicative funding participation amounts received from six major banks to date.

OM said a $US428 million ($A408 million) debt syndication process was underway, with completion expected for the second half of the 2012 calendar year.

The manganese miner produced 190,071t grading 36.27% manganese from 353,060t of ore mined from its Bootu Creek mine in the Northern Territory during the June quarter and generated a net profit of $A2.7 million for the first six months of 2012.

At the end of June, OM’s cash kitty totalled $67.7 million.

Shares in OM were unchanged at 44c.

TOPICS:

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

A growing series of reports, each focused on a key discussion point for the mining sector, brought to you by the Mining News Intelligence team.

editions

Mining Company ESG Index: Benchmarking the Future of Sustainable Mining

The Mining Company ESG Index report provides an in-depth evaluation of ESG performance of 61 of the world's largest mining companies. Using a robust framework, it assesses each company across 9 meticulously weighted indicators within 6 essential pillars.

editions

Mining Journal Intelligence Global Leadership Report 2024: Net Zero

Gain insights into decarbonisation trends and strategies from interviews with 20+ top mining executives and experts plus an industrywide survey.

editions

Mining Journal Intelligence Project Pipeline Handbook 2024

View our 50 top mining projects, handpicked using a unique, objective selection process from a database of 450+ global assets.

editions

MiningNews.net Research Report 2024

Access a multi-pronged tool to identify critical risks and opportunities in Australia’s mining industry.