Capital Ltd - Mauritius-based drilling and mining services - Raises GBP30 million from placing of 51.8 million shares at 58 pence each, with funds to be used to implement new contract with FTSE 250 gold miner Centamin. The new equity represents 38% of Capital's existing share capital. The placing price was an 8% discount to Capital's closing price on Tuesday of 63p, and the size of the placing was increased from the originally planned GBP22 million in response to investor demand, Capital says. On Wednesday, Capital and Centamin announced the award of new contracts to Capital for Centamin's Sukari gold mine in Egypt. Capital said the new open pit waste mining services contract, together with the extension and expansion of an existing drilling contract at Sukari, will bring USD235 million to USD260 million in incremental revenue over the four years starting January 1. "The Sukari waste stripping and additional drilling contracts are transformational for Capital, and this opportunity has been recognised by the significant demand for the oversubscribed equity fund raising," Executive Chair Jamie Boyton says. Boyton and three other directors subscribe to 1.6 million of the shares, and Boyton now has 22.6 million shares, a 12% stake.
Current stock price: 60.92p
Year-to-date change: down 7.7%
By Tom Waite; thomaslwaite@alliancenews.com
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Capital (CAPD)
Centamin PLC (CEY)