Gold miner Newcrest Mining is undertaking a fully underwritten institutional placement with the aim of raising A$1-billion, along with a share purchase plan (SPP) to raise a further A$100-million.
The funds will be used to purchase the Fruta del Norte financing facilities, for $450-million and to fund future growth options such as the construction of declines at Havieron and Red Chris.The institutional placement will compromise some 39.1-million new fully paid ordinary shares, that will be issued at a price of A$25.60 a share. The offer price represented a 7% discount to Newcrest’s last closing price, and an 8.9% discount to the five-day volume weighted average share price.