Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Iberian Minerals Corp. has closed its previously announced underwritten offering of 84,444,500 registered shares at a price of $0.90 per share for gross proceeds of $76,000,050. The shares sold today included the exercise in full of a 15% over-allotment option previously granted to the underwriters.
The net proceeds of the offering will primarily be used to finance the purchase from Trafigura of its interest to 45.96% of the after tax net operating profit of Compania Minera Condestable S.A., which is the subsidiary through which Iberian holds its approximately 98.73% interest in the Condestable Mine. As partial consideration for the NPI Buy-out, Iberian announces that it will issue to Trafigura 1,236,551 registered shares at a deemed issue price of $0.90, subject to regulatory approval. The NPI Buy-out is expected to close as soon as commercially possible and, in any event, not later than 15 business days from today.
The net proceeds of the offering will also be used to fund Iberian’s work program at its Sotiel property and for general working capital purposes.
“We are very pleased with the support that this financing received. The proceeds will allow the company to complete two important priorities being the NPI Buy-out, which we believe to be accretive to our shareholders, and also to pursue a potential strategic growth opportunity in Spain by advancing our study of the Sotiel property,” said Iberian Chief Executive Officer Daniel Vanin.
Read the full news release here
