THE Singapore Exchange has granted Catalist-listed miner Alliance Mineral Assets approval for the listing and quotation of up to 168.6 million new shares from strategic placements to raise A$32.5 million.
The new shares will be issued to Australia-listed Galaxy Resources Ltd and a subsidiary of China-based Jiangxi Special Electric Motor Co (Jiangte).
The institutional placement with Galaxy will comprise the issue of 112.5 million shares, bumping its 4.73 per cent stake in Alliance Mineral to 11.83 per cent of its enlarged issued share capital. Galaxy will then become Alliance’s largest shareholder.
Weier Antriebe und Energietechnik, a wholly-owned subsidiary of Jiangte, will take up 50 million shares, increasing its original 6.42 per cent shareholding to 9.08 per cent.
Both placements were not underwritten and were managed and arrangement by Canaccord Genuity, who will be issued 6.125 million shares as placement fee.
The placement shares were issued at A$0.20 (S$0.19) each. Alliance Mineral shares traded at $0.187 as at 10.22am.
The listing and quotation of the 168.6 million new shares on the Catalist Board is subject to compliance with the SGX-ST’s listing requirements. The share issuance is also subject to shareholder approval at an extraordinary general meeting.
The proceeds raised will be split 37 per cent for the plant upgrades and exploration at its Bald Hill lithium and tantalum mine, 34 per cent for its working capital and 29 per cent for exploration, other business initiatives and other working capital requirements.
Alliamce Mineral also agreed on Friday to issue 2.5 million new fully paid ordinary shares at A$0.20 each (advisor shares) to financial firm Canaccord Genuity (Australia) Limited as part of a financial advisory fee payable for its role in the merger between Alliance and Tawana Resources NL.
The company will also apply for quotation of the new shares and the advisor shares on the Australia Stock Exchange upon issue.