Australian copper and gold producer Aeris Resources Ltd. is looking to raise up to AU$90 million through an institutional placement and a share purchase plan to reduce debt and fund its growth projects.
The company has received commitments to raise AU$80 million through an institutional placement of shares.
Under the placement, the company plans to issue approximately 177.8 million new shares at an offer price of 45 cents per share.
In addition to the placement, the company is undertaking a share purchase plan to raise approximately AU$10 million. Shares will be offered to eligible shareholders at the same price as the placement.
Aeris Executive Chairman Andre Labuschagne said: “The capital raise allows us to deleverage our balance sheet and accelerate exploration and growth initiatives.”
Upon completion of the transaction, the company will repay in full the AU$40 million loan facility to WHSP. The company also earmarked the funds for further exploration drilling at Golden Plateau and Southern Vein Field at Cracow.
Any further funds received from the capital raising will be applied to general working capital.
Aeris said it will have AU$62 million and no debt on its balance sheet upon completion of the transaction.
The settlement of the new shares under the placement is scheduled for November 5, with new shares issued on November 6. The share purchase plan offer will open on November 6 and close December 5. The allotment of shares is set for December 9.
