14th Jun 2016 07:21
LONDON (Alliance News) - Metminco Ltd on Tuesday said it has executed a binding term sheet with CD Capital Natural Resources Fund III LP for an equity investment of USD45.0 million to back work on the Los Calatos copper-molybdenum project in Peru.
Metminco said prior to the investment being made, it will restructure all its subsidiaries involved in the Los Calatos project into a single entity, Los Calatos Mining Inc.
CD Capital Fund III will then subscribe for USD16.0 million in shares of Los Calatos Mining, equivalent to a 51% stake in the new company. It will then have the option to subscribe for additional shares in the Los Calatos Mining business in two additional tranches of USD14.5 million each. If both are exercised in full, CD Capital Fund III will increase its stake in the business to 70%.
Metminco said it expects Los Calatos Mining will get the first tranche of funds in July.
Metminco shares were down 28% to 0.196 pence, the worst performer in the AIM All-Share in early trade.
By Sam Unsted; [email protected]; @SamUAtAlliance
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