HONG KONG, Jun 20, 2010 (Dow Jones Commodities News Select via Comtex) -- China Sci-Tech Holdings Ltd. (0985.HK) said Monday it raised US$600 million from selling new shares to fund its investments in copper mining projects in Australia and Peru.
The Hong Kong-based company said in a statement it sold 23.4 billion new shares at HK$0.20 each to investors, including its cornerstone investors -- CCB International Asset Management Ltd., tycoon Cheng Yu-tung and Cheung Chung-kiu.
It added it received orders from investors totaling more than US$1 billion.
Of the total amount raised from the share sale, around US$430 million will go toward its Marcobre copper mine in Peru, US$120 million will go toward its Lady Annie project in northwestern Queensland, and the remaining amount will be for general corporate purposes, the statement said.
The Marcobre mine, in which CST is a joint venture partner with LS-Nikko Copper Inc. and Korean Resources Co., is expected to produce 110,000 metric tons of copper cathodes a year from 2013 at a cash cost of US$0.90 a pound.
Lady Annie, a disused facility previously owned by Australia's Cape Lambert Resources Ltd. (CFE.AU), will restart production later this year. The project is expected to produce 30,000 tons of cathode a year at a cash cost of US$1.20/lb, China Sci-Tech said.