Metals Acquisition raises A$140 million through institutional placement
- Metals Acquisition Limited has launched an institutional placement of approximately 7.8 million new Chess Depositary Interests (CDIs) at an issue price of A$18.00 each.
- The placement aims to raise around A$140 million (~US$96 million) to optimize the company's balance sheet and retire existing mezzanine debt.
- This strategic move is expected to enhance the company's financial flexibility and support future growth opportunities.
On October 8, 2024, Metals Acquisition Limited (MAC) announced a significant institutional placement in Australia, intending to issue approximately 7.8 million new Chess Depositary Interests (CDIs) at an offer price of A$18.00 each. This initiative is projected to raise around A$140 million (~US$96 million) before costs, representing a 13% discount to the last closing price of CDIs on the ASX. The funds raised will primarily be utilized to optimize MAC's balance sheet and retire its existing US$145 million mezzanine debt facility at the earliest opportunity. The decision to pursue this placement comes as MAC continues to focus on reducing its net debt, which has decreased from US$455 million following the acquisition of the CSA Copper Mine to approximately US$134 million upon completion of the placement. The company reported strong operational results for Q3 2024, with copper production of 10,159 tonnes at an average grade of 4% copper, indicating robust performance in its mining operations. By retiring the mezzanine debt, MAC aims to enhance its financial flexibility and create a more typical balance sheet that aligns with the quality and maturity of its assets. This strategic move is expected to provide the company with additional opportunities for inorganic growth in the future. Overall, the placement reflects MAC's commitment to strengthening its financial position and supporting its ongoing operational success in the competitive copper mining industry.