G-Resources complete list of backdoor in Hong Kong two years ago, which saw Hong Kong listed shell company Finance Energy Smart Rich obtained gold Martabe silver mining project and all of OZ Minerals Australia. This acquisition was followed by a fundraising exercise including placement $ 257.000.000 stock to a group of investors runway, sales by $ 250 million worth of shares to investors associated with the company and the placement of $ an estimated 80,000,000 to institutional investors.
Together, sharing the left about 95% of Rich Smart in the hands of the new shareholders and the company later changed its name to G-Resources.
Hong Kong registered G-Resources Group, which is in the process developing gold mining and silver in greenfield Indonesia, on Wednesday raised HK $ 1690000000 ($ 217 million) from the sale of new shares in early May after saying that the project would cost about 30% higher than previous estimates.
Morgan Stanley is a placement agent for that whole package fundraising and also acted as sole bookrunner for the top-up placement Wednesday.
Stock prices have been strengthened around 76% during the last 12 months as the company has been making progress on the construction of the first mines. Shareholder base, however, still quite concentrated and the placement of new investors give the opportunity to gain exposure as well. G-Resources has committed not to issue new stock for six months in advance.
This will put the total cost of $ 576.000.000. The company initially said that it intended to fund the additional costs through new bank facilities $ 250.000.000, but when the opportunity to raise more equity presented itself, decided to take profits.
The placement was launched on Wednesday morning, Hong Kong time, after the stock was suspended from trading. The company initially offered approximately 2310000000 shares with the option to allow client transactions with 502.200.000 shares further, or close to 10%. The price was shown between HK $ 0.59 and HK $ 0,62 per share, which translates into a discount of 6.1% to 10.6% compared with the closure Tuesday of HK $ 0.66 and under range is proportional to the size of the deal from about $ 175 million.
The fact that the price of spot gold is trading at a record above $ 1,600 per ounce is one of the contributing factor and, earlier this week, the G-Resources also reported an increase in gold and silver resource base in Indonesia, mining project named Martabe. New discoveries directly to the East of the main holes and increases resource estimate of gold with 233.000 ounces to 6.730.000 ounces of silver and resources with 2.11 million oz to 68.310.000 ounces.
Meanwhile, after a delay due to relocation processing facilities, the company is getting closer to the beginning of production. Currently, the start date is scheduled for December this year, which is based on historical performance by mining companies, other shows greenfield rerating stock could be on the cards for the near future because the transition from pure exploration and development to production.
Partly in the light of this, Morgan Stanley and UBS have both upgraded their stock price target for G-Resources in the last few days by 10 cents HK respectively, showed a 15% and 21% respectively in reverse from current levels.
However, the bookrunner has mengetuk-ngetukkan an anchor much support and basic agreements covered about 75% at the time of the launch, which gave the momentum offer strong from the start. Late afternoon, investors were told that the deal will be at least partly upsized and when the book is closed there is enough demand to implement the option allows the customer in full.
This prompted the deal for the size of approximately 2810000000 shares, or 20% of the share capital, which is the maximum company might sell it without asking for additional approval from shareholders.
The price was fixed only from the bottom of the range at HK $ 0.60 for discount 9.1%.
There is a demand from traditional asset managers as well as resource-focused funds and hedge funds and more than 40 investors are said to have participated in the deal. The buyers included both shareholders and new investors to the name.
Hong Kong-listed G-Resources Group for gold mining project
