Herbert Smith Freehills is proud to have advised the joint lead managers to Group 6 Metals Limited (Group 6) on its capital raising to raise up to approximately A$32 million, comprising a non-underwritten institutional placement to raise up to approximately A$27 million and partially underwritten security purchase plan to raise up to approximately A$5 million (together, the Offer).
The placement comprises an unconditional tranche as well as a tranche conditional on shareholder approval. The security purchase plan is also subject to shareholder approval.
The securities being offered under the Offer include new fully paid ordinary shares together with two new options for every three fully paid ordinary shares subscribed for. The issue of the options is also subject to shareholder approval.
Ord Minnett Limited and Canaccord Genuity (Australia) Limited acted as joint bookrunners and placing agents in respect of the placement and underwriters for A$3 million of the security purchase plan.
Group 6 reported that the placement received strong support from major shareholders, with approximately A$21 million raised from Group 6’s top four shareholders. Proceeds from the Offer will be used to progress the development of the Dolphin Tungsten Mine on King Island, Tasmania, and provide Group 6 with balance sheet flexibility.
The Herbert Smith Freehills team was led by partner Philippa Stone and supported by solicitors David Tilley and Rainer Gaunt.
Philippa Stone said, “We are delighted to have acted for the joint lead managers on this complex and successful capital raising.”