Straits completes $134m placement
Straits Resources Ltd has successfully completed a placement of 28,600,000 shares at $4.70 per share to raise gross proceeds of $134.4 million.The net funds raised under the placement will be used to reduce the Tritton copper hedge book, restructure the company’s debt facilities and provide funding for continued expansion and general corporate purposes including potential acquisitions. The placement was undertaken via a global bookbuild, jointly managed by RBC Capital Markets and Austock Corporate Finance Limited. There was significant demand from both domestic and international investors that resulted in the placement being heavily oversubscribed and a clearing price of $4.70 per share. Following the placement, Straits intends to undertake a Share Purchase Plan (SPP) of up to $5,000 per eligible shareholder. The SPP will be offered at the placement price of $4.70 per share and will be subject to a cap of $12m to be allocated on a first come, first serve basis. On completion of the placement and SPP, Straits will have approximately 225 million ordinary shares on issue. Settlement and allotment of all shares under the placement will occur on 11 October 2007. The placement was made to institutional and sophisticated investors pursuant to Section 708 of the Corporations Act 2001. All of the shares issued under the placement will rank pari passu with existing ordinary shares. Straits is an ASX200 diversified resources company focussed on generating strong and sustainable earnings for its shareholders from a portfolio of resource projects. Based in Perth, the company has a management team with an impressive track record of advancing resource projects through to full-production. Straits controls and operates the Whim Creek Copper Operation in WA, the Tritton Copper Operation in NSW, the Mt Muro gold mine in Indonesia and the Sebuku Coal mine in Indonesia owned by Straits subsidiary Straits Asia Resources which is listed on the Singapore exchange. In addition Straits holds an outstanding portfolio of mining investments, development projects and exploration ground throughout Australia and Indonesia. Straits also owns Varomet, a UK based physical metal distribution and marketing business.