Contractor MACA is set to grow its mining services business after raising $60 million through a share placement.
The Perth-based company is expecting strong growth, which will require additional mining equipment and an increase in working capital.
MACA has won a series of new contracts in 2017, including last week’s award of the open pit mining contract at Pilbara Minerals’ Pilgangoora lithium-tantalum project in Western Australia.
It was also awarded a $6 million mining contract at Northern Minerals’ Browns Range heavy rare earth pilot plant project and the bulk earthworks contract at the Gruyere gold joint venture, both in WA.
The share placement, involving 33.4 million shares at $1.80 each, will help consolidate MACA’s financial capacity to drive further growth opportunities, the company said.
MACA managing director Chris Tuckwell said the company was pleased with the overwhelming support for the placement from institutional and professional investors.
“MACA’s strong balance sheet ensures that we are ideally positioned to continue to win new work from what is a very strong pipeline, and to pursue value accretive growth opportunities for our business,” Tuckwell said.
The placement represents a 7.5 per cent discount to the company’s five-day volume weighted average price prior to the announcement.