Johannesburg, South Africa — MININGREVIEW.COM — 29 January 2010 – South African-based and JSE-listed Metorex Limited “’ a mid-tier mining group well-known as a base metal operator in Zambia and the Democratic Republic of Congo (DRC) “’ has announced a US$100 million (R750 million) capital raising programme and the simultaneous implementation of a US$ 100 million Ruashi revised debt package (RRDP).
In a statement issued here the company explained that the purpose of the equity raising was to raise sufficient equity capital to:
- Trigger the RRDP and allow Metorex to access the significant benefits arising from the RRDP;
- Take Metorex’s promising development projects (Musonoi/Dilala East, Kinsenda and Lubembe in the DRC) up the value curve through, further drilling and tightening of the reserve/resource estimates for the completion of bankable feasibility studies;
- Provide sufficient working capital to the group to service holding costs in respect of its development projects (in particular, Kinsenda) while further work was being carried out;
- Allow Metorex to dispose of or to put on care and maintenance the non-profitable and cash consuming Consolidated Murchison division; and
- Recapitalise the Metorex balance sheet appropriately, including creating sufficient treasury reserves, to allow Metorex to embark on a sustainable growth path and to de-risk the business and asset portfolio.
CEO Terence Goodlace commented: “This capital raising will significantly strengthen the Metorex balance sheet and sets the scene for new project development and value creation. Our new focus will be on sustainable growth and expansion, while maintaining strict operational, financial and technical standards. Currently, our potential development projects include the Central African Copper Belt deposits at Musonoi (Dilala East), Kinsenda and Lubembe in the DRC, and Metorex will apply a disciplined approach in taking these assets up the value curve,” he added.