Capital Limited (LON:CAPD) has announced the successful completion of the bookbuild for its placing of new common shares following Wednesday’s announcement of the fundraise related to a transformative new deal with Centamin PLC.
The group said a total of 51,800,000 shares had been placed, at a price of 58p each raising gross proceeds of approximately GBP30mln (approximately US$40mln), more than the GBP22mln initially targeted. Berenberg and Tamesis Partners acted as joint book-runners for the placing.
The 51,800,000 placing shares represent approximately 38% of the company’s existing issued share capital, and the placing price represents a discount of around 8% to Capital’s closing price of 63p on December 1, 2020. In early trade on Thursday, shares in Capital were trading at 61p each, down 3.2% on Wednesday’s closing price.
In a statement on Thursday, Jamie Boyton, Capital’s executive chairman, commented: ‘The Sukari waste stripping and additional drilling contracts are transformational for Capital, and this opportunity has been recognised by the significant demand for the oversubscribed equity fund raising.
“Capital welcomes our new investors, as well as thanking our existing shareholders for their continued support. The fundraising, which was upsized in order not only to meet investor demand but also broaden and deepen the quality of our shareholder register, provides Capital with the foundations for its next phase of sustainable growth.
“Capital looks forward to working with Centamin in unlocking further the potential of Sukari, a Tier 1 gold asset, as well as making further progress on a number of other tender opportunities.’
The company revealed on Wednesday that it had landed what it described as a transformative new deal with Centamin, inking a conditional open-pit waste mining services contract for the Sukari gold mine in Egypt.
The 120mln tonne open-pit waste mining contract sees the AIM-quoted company provide load & haul and ancillary services. At the same time, Capital has also extended an existing contract with Centamin for drilling services at Sukari.
Altogether the contracts are forecast to generate incremental revenues of US$235mln-GBP260mln over a four-year period starting January 1 2021.
Proceeds from the fundraising are earmarked for the purchase equipment to fulfil the Sukari contract as well as for general corporate purposes.