Mineral Commodities Ltd (ASX: MRC) ('MRC' or the 'Company') is pleased to announce a A$15.0 million accelerated non-renounceable entitlement offer launched today (the 'Entitlement Offer').
Under the Entitlement Offer, up to approximately 501.1 million new ordinary shares ('New Shares') will be issued at an issue price of $0.03 per New Share ('Offer Price').
The Entitlement Offer is to be conducted through an accelerated institutional entitlement component ('Institutional Offer') which opens today and a retail entitlement component ('Retail Offer') for eligible retail shareholders as at the record date of Monday, 30 October 2023 (further details are set out below under the heading 'Offer Information'). MRC has appointed Taylor Collison Limited as lead arranger to the Entitlement Offer ('Lead Arranger'), and Bacchus Capital Advisers Limited as Financial Adviser to the Company in respect of the Offer.
Board Participation
Mr Guy Walker, Non-Executive Director of the Company, will be taking up his entitlement in full under the Entitlement Offer, totalling $28,986.
Application of funds
The Company intends to apply funds raised to increase Tormin processing capacity, fund the acquisition of the remaining interest in Skaland (and increase production), build the graphite anode pilot plant, reduce trade and other third-party creditors and for working capital.
Chief executive officer comment
'The Entitlement Offer will enable MRC to implement critical improvements at Tormin to underpin the return to profitability. Importantly, the funding will support advancement on the battery minerals projects at a time when the global market for graphite and other battery minerals is undergoing positive transformation and attracting investment interest.' said Chief Executive Officer, Scott Lowe.
Offer Information
The Entitlement Offer is being conducted under a section 713 of the Corporations Act 2001 (Cth) ('Corporations Act') by way of a prospectus. Eligible shareholders will be sent a prospectus ('Prospectus') and a personalised Entitlement and Acceptance Form on or around 2 November 2023. The Company seeks to raise up to approximately $15.0 million (before costs of the offer) under the Entitlement Offer.
Institutional Offer
Eligible institutional shareholders will be invited to participate in the Institutional Offer which opens today and closes on or before 27 October 2023. The Entitlement Offer is not underwritten and the Lead Arranger, in conjunction with MRC, additionally has the right to place any shortfall arising from the Offer in accordance with the ASX Listing Rules. MRC shares have been placed in a trading halt while the Institutional Offer is undertaken. It is expected the trading halt will end at market open on Monday, 30 October 2023. New Shares under the Institutional Offer are expected to be issued on Friday, 3 November 2023. MRC will, upon issue of the New Shares under the Institutional Offer, seek quotation of the New Shares on ASX.
Contact:
Tel: +61 8 6373 8900
Email: investor@mncom.com.au
About Mineral Commodities Ltd
Mineral Commodities Ltd is a global mining and development company with a primary focus on the production of high-grade Mineral Sands and Natural Flake Graphite from operations in South Africa and Norway. The Company is a producer of zircon, rutile, garnet, magnetite, and ilmenite concentrates through its Tormin Mineral Sands Operation, located on the Western Cape of South Africa. The Company also owns and operates the Skaland Graphite Operation in Norway, the world's highest-grade operating flake graphite mine and is the only producer in Europe. The planned development of the Munglinup Graphite Project, located in Western Australia, builds on the Skaland acquisition and is a further step toward an integrated, downstream value-adding strategy which aims to capitalise on the fast-growing demand for sustainably manufactured lithium-ion batteries.
MINERAL COMMODITIES LTD 