Yunnan Copper to Raise $880 mln in Share Placement

SHANGHAI, July 23 -- Yunnan Copper Co (000878.SZ: Quote), China's third-largest copper producer, said on Thursday it will place up to 300 million new shares with investors, raising about 6 billion yuan ($880 million) for a copper expansion project and to purchase assets from its parent company.

    It will place the shares with no more than 10 investors at a price of at least 20.59 yuan a share.

    The shares last closed at 26.20 yuan on Thursday last week. They were subsequently suspended from trade after rising 17 percent over two sessions amid rumours about the company's projects.

    The funds will be used primarily to purchase five mainly copper-related units from its parent company, further consolidating the group's assets, and to fund the Hongshan copper expansion project, due to be completed by 2012 and boost the facility's output to 8,000 tonnes per year. The funds will also be used to repay bank loans.

    (Source: Reuters)