Silver Lake to raise $47.5 million

THE BOURSE WHISPERER: Silver Lake Resources (ASX: SLR) has given notice it is embarking on a $47.5 million raising by way of an underwritten placement of 55.9 million fully paid ordinary shares to institutional and other sophisticated and professional investors.

The raising will target investors from Australia and other jurisdictions at an issue price of 85 cents per new share, representing a 7.6 per cent discount to the 10 day volume weighted average price (VWAP) and a 2.2 per cent premium to the 30 day VWAP of shares on the ASX.

The placement is to be fully underwritten by RBC Capital Markets.

Silver Lake indicated it also intends to raise up to a further $15 million through a Share Purchase Plan (SPP) to eligible shareholders at 85 cents per share.

The company also intends, subject to Silver Lake shareholder approval to be sought at a General Meeting to be held in early October 2013, to raise a further $1.2 million through a placement of Silver Lake fully paid ordinary shares to directors of the company at an issue price of 85 cents per share, the same issue price as offered in the Placement and SPP.

“We are delighted by the strong support received for the placement from a large number of existing and new Australian, Asian, North American and European investors which ultimately resulted in a heavily over-subscribed Placement,” Silver Lake Resources managing director Les Davis said in the company’s announcement to the Australian Securities Exchange.

“Net proceeds raised from the Placement, the SPP and the placement to directors will be used to repay our outstanding debt facilities and provide working capital for our operations.

“The strong support we have had from existing and new investors coupled with the participation by Silver Lake directors in this capital raising highlights the positive sentiment towards the future prospects of the company.”