Sandfire Resources offloads Adriatic Metals stake for $97m ahead of big capital commitments
Sandfire Resources is set to net $97 million when it sells its entire 16 per cent stake in Adriatic Metals today ahead of a period of heavy capital spending by the copper miner (reports The West Australian).
14th October 2021
The Karl Simich-led company announced this morning it would sell its 34.6 million shares in Adriatic at $2.80 as part of a broader $US244.5m funding package by the dual-listed company to develop its Vares silver project in Bosnia.
The $97m represents a big windfall for Sandfire which invested $2m into the $10m float of Adriatic in 2018 at an issue price of just 20¢. Since then it has continued to accumulate shares in the company at prices well below $2.80.
The share sale ends any speculation that Sandfire could launch a takeover attempt for the Paul Cronin-led company and comes as the miner faces hefty capital demands as it develops its $US366m Motheo mine in Botswana and beds down the $US1.87 billion acquisition of the Matsa polymetallic mine in Spain.
Adriatic, which is listed on both the London Stock Exchange and the ASX, today announced a $US244.5m debt and equity raising to fund the development of the $US168m Vares silver, zinc lead, copper, gold mine in Bosnia and Herzegovina.
Orion Resource Partners will fund the $US142.5m debt component of the package with the $US102m balance delivered by way of an equity raising.
It represents the biggest equity raising for a mining company listed on the London Stock Exchange this year.
Sandfire will dispose of its Adriatic stake by way of an accelerated bookbuild through Canaccord Genuity, RBC Capital Markets Europe and Stifel Nicolaus Europe.
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