Copper 360 has announced a R1.15-billion ($65.2 million) rights offer to fund its restructuring and growth strategy in South Africa.
The offer includes R400 Million ($22.7 million) in new equity and the conversion of up to R750 Million ($42.5 million) of debt.
It said that the initiative aims to raise capital for short- and medium-term expansion, reduce the company's debt burden to enhance profitability, and develop multiple orebodies with growth potential.
The R400-million equity portion will be offered to existing shareholders at 50 cents per share. This capital is critical for the company's transition from explorer to producer.
"The capital secured … will not only enable the sustainable long-term profitability of the company, but will also provide the growth capital required to enable the company to grow in stages, initially reaching 40 000 milled tonnes a month within 12 to 18 months, with further growth to 60 000 milled tonnes a month within 24 months," the company said.
The debt conversion addresses the company's heavily geared balance sheet.
Copper 360 said that the restructuring of the debt instruments creates a stronger balance sheet, one that is geared for growth.
A maximum of 1.5 billion new shares will be issued to debt holders as part of this conversion.
Mathew Nyaungwa, Editor-In-Chief, Rough & Polished
