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Weatherly International receives strong support for open offer

Last updated: 12:13 03 Dec 2014 EST, First published: 13:13 03 Dec 2014 EST

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More than three-quarters of the shares available in Weatherly's (LON:WTI) open offer have been snapped up.

The company said 49.7mln open offer shares were taken up under the regular terms of four new shares for every 19 shares held, while the option to apply for shares over and above the pro-rata entitlement proved very popular, to the extent that applications had to be limited to 400 new shares for every 19 held.

The company said just over 53.5mln open offer shares were sold off via the Excess Application Facility.

In all, 79.5% of the open offer shares were taken up at 2.925p a pop, raising around £3.0mln.

Around 26.6mln open offer shares not taken up by shareholders were placed with institutional investors, of which 24.02mln went to Polo Resources (LON:POL), which had previously committed to pump around £900,000 into Weatherly through a share subscription.

In aggregate, under the subscription, placing and open offer, the company will issue 160,641,866 shares (representing 20.7% of the enlarged share capital) for gross proceeds of £4.7 million (net £4.5 million).

Under the terms of the subscription agreement with Polo, as Weatherly delivered fewer than 76,007,350 placing shares to Polo, Polo has the right to subscribe for a further 51,984,748 shares at the subscription price before 7 February 2015.

At present, Polo's stake in Weatherly is set to be around 7.1% of the enlarged share capital, at a cost of £1.6mln.

"Our Tschudi project, which is on budget and on schedule, is fully funded up to our first production of copper next year," noted John Bryant, chairman of Weatherly.

"The board is very confident about Weatherly's prospects but we felt that it was prudent to enter this phase with sufficient cash resources to cover unforeseen eventualities," he added.

"I am very pleased to welcome Polo as a shareholder in the company," said Rod Webster, chief executive officer of Weatherly.

"It should also be noted that we have seen strong demand for shares from our Namibian-based management team and, in a significant vote of confidence, our prime contractor for the Tschudi project- and significant shareholder - Logiman has applied for 50 million shares at a cost of £ 1.5 million," he added.

Weatherly's copper portfolio includes the following assets in Namibia: two producing mines named Otjihase and Matchless; Tschudi - an open pit heap leach, solvent extraction and electro-winning development project, which is fully financed with production expected in the second quarter of 2015; the Tsumeb Tailings project, which is in feasibility stage, and an exploration licence.

In addition, Weatherly holds a 25 per cent. interest in AIM traded China Africa Resources plc (LON:CAF).

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