Independence Group NL
(ASX:IGO) has launched a $164.3 million equity capital raising to partly fund its share in the Tropicana joint venture project development.
The mineral explorer says it will raise the funds through an entitlement offer and an institutional share placement.
The $50.6 million 1-for-15 accelerated non-renounceable pro-rata entitlement offer will be issued at a price of $6.65 per new share.
The $113.8 million institutional share placement will be issued at a price of $6.65 per new share.
Independence estimates Tropicana will cost between $600 million to $620 million in addition to around $100 million to $120 million of working capital requirements.
Independence’s 30 per cent share of these costs is expected to be between $210 million to $220 million.
The group’s existing cash balance is around $137 million will also be used to fund works around the Long Nickel mine as well as other regional exploration and development.
Independence Group improved its net profit in the year to 30 June, earning $28.74 million.
