Mount Gibson Iron
A$97m Rights Issue, A$66m Placement and Offtake Agreements with APAC and Shougang Concord
On 3 November 2008, a number of Mount Gibson’s customers defaulted on their offtake agreements. Due to lower realised prices and sales volumes; particularly in the short and medium term, Mount Gibson required additional funding to develop its projects.
As part of its corporate advisory role for Mount Gibson, Azure advised on a three-part transaction, involving a 1 for 5 renounceable rights issue, a placement of 110 million shares at A$0.60 per share to raise A$66 million and offtake agreements with APAC and Shougang Concord.