Rex Minerals has raised $50m to progress its controversial copper project on the Yorke Peninsula
Rex Minerals hopes to make a final decision on whether to mine copper on the Yorke Peninsula before the end of next year.
Rex Minerals aims to make a final investment decision on its controversial Hillside copper project on the Yorke Peninsula by the end of next year after raising $50m to progress mining studies.
The company said investors including Macquarie Capital had agreed to take up $50m worth of shares, subject to shareholder approval, with the money largely to be used to fund pre-development activities at Hillside.
The company said it is “targeting a final investment decision for stage one of the Hillside copper project in South Australia in the fourth quarter of 2022’’.
The project, which is located 12km south of Ardrossan and 3km north of Pine Point, has attracted high profile opposition in the past, with Adelaide businessman Glenn Cooper arguing it was too close to the sea and located on and near some of the best barley and wheat-growing land in the state.
Local farmers have also raised concerns about the project in the past.
Stage One of the project envisages a 13 year mine life with the project costing $US410m to develop.
Stage two would extend the life of the mine to 33 years.
The ore would be exported via Port Adelaide as a concentrate.
The project, which mid-last year received the final state government approval needed to operate, would require the realignment of a section of the Yorke Highway.
Rex spokesman Gavan Collery said the company was “highly conscious of community engagement’’ and said it was an exciting project for the regional and state economy.
Rex managing director Richard Laufman said it was a key milestone for the company.
“We are pleased to welcome strong institutional investors to our share register, with proceeds from the equity raising vital in ensuring that we are able to expand our project delivery team at Hillside and build momentum ahead of our target for a successful final investment decision in Q4, 2022,’’ he said in a statement to the ASX.
“Rex is advancing rapidly as an emerging copper development company, following the South Australian Government’s approval of the Program for Environment Protection and Rehabilitation (PEPR)
“Subsequently, we released the 2020 Hillside feasibility costing update, retired all debt, completed the board succession, and doubled Hillside’s copper ore reserves.’’
The company has estimated direct wages to employees and contractors over the 13 year mine plan would be more than $500m, with the project to employ about 430 people.
The capital raising is equivalent to about a third of Rex’s current market capitalisation.
The money will be raised, subject to shareholder approval, at 30c per share, 16.7 per cent less than at the last close of trade.
Current shareholders will not be able to participate.
To join the conversation, please log in. Don't have an account? Register
Join the conversation, you are commenting as Logout