Mineweb reported that Straits Resources will look to raise A$60 million through a renounceable entitlement offer, and has signed a life-of-mine offtake agreement with Glencore.
As quoted in the market news:
Under the entitlement offer, Straits would issue 1.55 new fully paid ordinary shares for every share held at September 17, at an issue price of A$0.085 a share.
The issue price represented a 23.5% discount to the ten-day volume-weighted average price of Straits shares, and was expected to raise up to A$60-million.
Glencore has agreed to sub-underwrite the offer for up to A$40-million, with a number of existing shareholders making up the balance.
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