Budget airline Virgin Blue Holdings Ltd
(ASX:VBA) has announced the successful completion of the retail component of its entitlement offer announced on July 27.
The company says the retail offer was fully underwritten and will raise $98.3 million.
Virgin Blue says due to overwhelming demand it will scale back applications.
Virgin says eligible institutional and retail investors have taken up 1.16 billion new shares under the entitlement offer and placement and the gross proceeds of the offer are $231.4 million.
CEO Brett Godfrey says as a result of the entitlement offer, Virgin Blue is better positioned to withstand the current difficult operating environment and to take advantage of growth opportunities in the sector as they arise. Virgin Blue reported a loss of $160 million in 2009 following four years of profits.
Resources company Equinox Minerals Ltd (ASX:EQN) says it has paid Phelps Dodge Mining US$12.8 million to extinguish the right by Phelps to receive a one per cent net smelter return royalty from its Lumwana copper project.
Between August 1999 and June 2003 Equinox earned a 51 per cent interest in Lumwana as a result of funding a bankable feasibility study.
The company says under the purchase and sale agreement it then acquired the remaining 49 per cent interest in Lumwana.
The agreement provided that Phelps retain a right to a one per cent net smelter royalty that could be terminated by Equinox under certain conditions.
CEO Craig Williams says given the development and operating phase that Lumwana mine is now at, and looking at the inherent value of these wholly owned mining assets judged today compared to their value in 2004, the company believes this is a very good deal for Equinox and its stakeholders. After four years of losses Equinox Minerals posted a US$172.6 million profit in 2008.
Developer of its Spinifex Ridge Molybdenum Project, Moly Mines Ltd (ASX:MOL) says it is close to completing documentation for a minimum US$25 million global institutional share placement as a condition of the restructure of its interim financing facility with US investment firm Trust Company of the West.
On Monday the company announced that the Trust Company of the West had approved a one month extension to the maturity for its $150 million interim financing facility to November 30 2009.
The extension is subject to a number of conditions including undertaking a successful equity capital raising of a minimum of US$25 million to be used to develop Moly Mines Spinifex Ridge Iron Ore Project.
According to the Australian Financial Review, Moly Mines managing director Derek Fisher says the company is looking to raise more than US$25 million in its raising if it can, aiming for a target amount of $100 million.
The Financial Review says Mr Fisher expects solid demand for the stock following a recent recovery in the price of molybdenum and since China has moved from supplier to net importer. Moly Mines posted a profit in 2008 after losses the four years previous.
