Mineral Deposits has successfully completed an equity placement of 20 million shares at $2.00 per share raising $40 million.
The placement received very strong support from existing institutional shareholders of the company. The placement shares will be issued in two tranches. The first will comprise of 12.5 million shares to be issued under the company’s 15% placement capacity pursuant to ASX Listing Rule 7.1. The second will comprise of 7.5 million shares subject to shareholder approval at a meeting of shareholders expected to be held in January 2014.
Proceeds from the placement will be used to fund MDL’s share of potential equity contributions to TiZir Limited to assist with Grande Côte’s construction completion and, more particularly, operational working capital requirements.
Flooding of the start-up dredge pond at Grande Côte is expected in February next year, with first production of ilmenite and zircon scheduled for the following month. New shares issued under the Placement will rank equally with existing MDL shares.