Indophil boosts kitty, inks alliance

SHARES in Indophil have gained on news of a $US99.4 million ($A97.7 million) share placement to help fund its Tampakan copper-gold project in the Philippines through to first production.
Indophil boosts kitty, inks alliance Indophil boosts kitty, inks alliance Indophil boosts kitty, inks alliance Indophil boosts kitty, inks alliance Indophil boosts kitty, inks alliance

The company has signed a placement agreement with Alsons Power Holdings Corp, which is controlled by long-term Philippine-base Indophil shareholder, the Alsons Group.

"Today's announcement significantly strengthens a strategic alliance focused on supporting the Tampakan project through final approvals, to construction and first production," Indophil said.

Following the placement, which consists of two tranches, the Alsons Group will control 19.99% of Indophil revised shares on issue.

Under the first tranche, 66.67 million shares will be issued at 45c per share to raise $30 million, representing a 7% premium to its 42c share price at market close on Friday.

The second tranche will include 141 million shares at 48c per share to raise $67.7 million, representing a 14% premium to the closing share price on Friday.

The issue of tranche 2 shares is conditional on FIRB approval and Indophil shareholder approval.

Alsons will also have the right to nominate two representatives to the Indophil board.

Indophil chief executive Richard Laufmann said Indophil's cash position would be around $264.1 million, once the new placement has been completed.

"[This is] a firm foundation upon which Indophil can build its continued participation in securing approvals and proceeding to construction of the world-class Tampakan copper and gold deposit," he said.

He added that Indophil was also considering seeking an additional listing on the Philippine Stock Exchange next year.

Alsons investment is being undertaken with financial support from BDO Unibank.

Shares in Indophil were trading 4.5c higher at 46.5c in morning trade.

  • NEW: Digital version of PNG Report magazine - View here
  • Porgera: Barrick-PNG talks go on - Read more
  • Follow the companies investing in the PNG market - Read more