SYDNEY, Jun 18, 2010 (Dow Jones Commodities News via Comtex) -- China Sci-Tech Holdings Ltd. (0985.HK) will raise up to US$370 million from major shareholders to fund its investments in copper mining projects in Australia and Peru, the company said Friday.
The Hong Kong-based investment group said it had received commitments from three cornerstone investors to subscribe to a share placing to fund its investments in Peru's Marcobre copper mine and the Lady Annie project in northwestern Queensland.
Marcobre, in which CST is a joint venture partner with LS-Nikko Copper Inc. and Korean Resources Company, is expected to produce 110,000 tons of copper cathodes from 2013 at a cash cost of US$0.90/lb.
Lady Annie, a disused facility previous owned by Australia's Cape Lambert Resources Ltd. (CFE.AU), will restart production of 30,000 tons of cathode later this year, with cash costs of US$1.20/lb.
The two projects will require US$755 million-US$765 million to restart production, the overwhelming majority of it on the Peruvian operation.
CST will issue 14.43 billion new shares at HK$0.20 each as part of the placement, equivalent to 34.17% of the company's existing shares at issue.
The three principal investors are also Hong Kong-based investment companies, with Chow Tai Fook Nominee Ltd. putting up US$200 million, Bondic International Holdings Ltd. pledging US$150 million, and CCB International Asset Management Ltd. offering US$20 million.