Canaccord raising for Metals X: sources
Canaccord has launched a $75 milion equity raising for gold and tin miner Metals X, sources told Street Talk on Monday night, as part of a wider restructure.
Canaccord has launched an equity raising for gold and tin miner Metals X, sources told Street Talk on Monday night.
It's understood the miner was seeking $75 million in fresh funds at $1.48 to $1.50 a share. The stock closed at $1.70 on Monday.
The raising is expected to be accompanied with news that Metals X will split into two parts; a pure play gold entity and a base metals company with its tin, nickel and copper assets.
Canaccord launched the deal on Monday night, after Metals X went into a trading halt.
The raising comes only hours after Metals X addressed potential investors at the annual Diggers & Dealers conference in Kalgoorlie, pitching its story and strong performance over the past year.
The raising is expected to account for about 10 per cent of Metals X's market value.
The company had a $886 million market capitalisation as at Monday's close of $1.70 a share.
Metals X has four key gold projects, including three in operation. The miner expects to be running at annual production of 300,000 ounces a year by the end of 2016.
The raising comes only one fortnight after Canaccord handled a selldown in Metals X on behalf of Hong Kong's APAC Resources.