Mineral Deposits Limited (MDL) announced that, subject to execution of definitive documentation and closing, it will undertake a private placement of 63.6 million new ordinary shares at C$0.52 (approximately A$0.62) per share raising C$33.1 million (approximately A$39 million/US$27 million). The placement shares will be placed with a limited number of Canadian institutions, with the raising managed by Toll Cross Securities Inc. and Cormark Securities Inc. Settlement is expected to occur on or about 30 March 2009. The proceeds of the placement, together with available credit lines, will be used to repay a US$35 million working capital facility provided by RMB Australia Holdings Limited and Macquarie Bank Limited.
The company also plans to offer shareholders resident in Australia or New Zealand the opportunity to subscribe for new shares in the company via a Share Purchase Plan (SPP). Eligible shareholders (those on the register at 7pm on 27 March 2009) will be able to purchase new MDL shares up to a maximum value of A$10,000 (subject to expected ASIC relief and ASX waiver). The price at which shares are issued under the SPP will be A$0.62.