Metals Acquisition Limited (MTAL, MAC.AX) has announced the initiation of an institutional placement involving approximately 7.8 million new Chess Depositary Interests, referred to as "New CDIs." The company aims to generate approximately A$140.0 million, equivalent to US$96.2 million, prior to expenses through this placement. The New CDIs are priced at A$18.00 each.
The settlement of these New CDIs is scheduled for Monday, October 14, 2024, followed by allotment on Tuesday, October 15, 2024.
The funds raised from this placement are intended to optimize Metals Acquisition's balance sheet. The company plans to reduce its leverage by paying off its existing US$145 million Mezzanine Debt Facility as soon as feasibly possible. Additionally, the proceeds will offer greater flexibility for the company to explore and pursue strategic opportunities for inorganic growth.
Metals Acquisition Limited maintains its projected copper production for the full year 2024, expecting results near the midpoint of its guidance range, which is between 38,000 tonnes and 43,000 tonnes.
In recent trading activity, MTAL closed Tuesday’s regular session at $13.25, marking a decrease of $0.66 or 4.74%. The stock experienced a further decline in after-hours trading, dropping by $0.75 or 5.66%.