MMG plans to raise $1.16bn to repay debt, fund mine development

China’s MMG said on Tuesday it plans to raise about HK$9.08 billion ($1.16 billion) through a rights issue to repay existing debt, allowing the Hong Kong-listed company to better support the ongoing development of its operating mines.

The rights issue of 3.47 billion shares will be conducted based on two rights shares for every five shares held at a subscription price of HK$2.62 apiece, MMG said in an exchange filing

The subscription price is at a discount of about 31.41% to MMG’s last closing price of HK$3.82 on Friday.

Meanwhile, coal miner Yankuang Energy Group said it had raised HK$4.96 billion by selling 285 million shares at HK$17.39 apiece.

Yankuang plans to use the funds to repay its existing debt, it said.

Application has been made to the stock exchange for MMG shares to resume trade on Tuesday. The shares went on a trading halt earlier this week.

($1 = 7.8200 Hong Kong dollars)

Source: MINING.COM