Shares in Newcrest Mining have gone into a trading halt as the company sells new stock to raise $500 million from institutional shareholders.
The Melbourne based miner told the Australian Securities Exchange the company was conducting share placement to strengthen its balance sheet, enhance financial flexibility and take advantage of growth opportunities.
The Miner will sell its shares at $27 each, a 12.9% discount to Newcrest’s closing price on January 30.
The proceeds of the placement will be used to pay down bilateral debt of $364 million.
Newcrest spokesperson Daryl Corp told MINING DAILY that the shares will remain in a trading halt until the market opens again on February 3.
“We expect to resume trading again tomorrow morning at which time we will advise the market of our results,” Corp said.
“We will give our large investors an opportunity to apply for stock today and then we will role into the UK and North America later tonight.”