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Mirabela Nickel In Placement To Raise Up To US$165 Million
Sep 8,2010 11:29CST
industry news

SYDNEY, Sep. 8 -- Brazilian-focused miner Mirabela Nickel Ltd. (MBN.AU) launched a share placement Wednesday to raise US$135 million-US$165 million to pay down debt, fund working capital, and assist in the expansion of its Santa Rita project.

Mirabela's main project is the Santa Rita operation in northeastern Brazil, where commissioning started last October.

The company said that US$38.1 million of the amount to be raised would repay principal amounts under Mirabela's US$190 million senior finance facility.

If that sum is raised, the miner's lenders have agreed to waive some covenant tests on the facility throughout 2011, which the company said would allow managers "to focus on ramp-up at Santa Rita and expansion of the open pit".

US$40 million would go to aid expansion of Santa Rita, and US$34.3 million-US$81.3 million would fund general working capital, the company said.

The institutional placement has UBS and Macquarie Capital as joint lead managers, and will be accompanied by a US$7 million placement to directors and an up to US$10 million share purchase plan if shareholders approve.

The share purchase plan will allow the company's Australian and New Zealand shareholders to subscribe for up to A$4,995 of ordinary shares, the company said.

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