any comments on the latest MIL message. Wonder if these will be a good buy or not?
Announces 1 : 5 Entitlements Issue
16-05 0942
The Directors of Magnesium International Limited (MIL) are pleased to
announce a 1 for 5 non-renounceable Entitlement issue at 10 cents per
B Share to raise approximately $8.3 million.
B Shares issued as a result of this Entitlements Issue will
constitute a new class of securities. The B Shares will convert, at a
minimum discount of 15%, into securities issued in the Company's
Major Capital Raising (currently anticipated to take place from the
third quarter of 2003), or alternatively, if the major capital
raising to fund the SAMAG Project has not occurred by 31 December
2004, the B Shares will automatically convert into Ordinary Shares at
a 15% discount.
Directors decided to establish the new B class of shares believing it:
i) minimises the impact of dilution on existing shareholders;
ii) ensures B shares receive the benefit of any upside movement in
the price of ordinary shares; and
iii) provides downside protection in the event of any decline in the
price of the ordinary shares.
Funds raised are intended to be used as follows:
* to pay the costs of final due diligence investigations needed by
banks, insurance companies and others in respect of the major capital
raising to fund the SAMAG project;
* for working capital to enable MIL to carry on its activities , and
* to enable the funding of Stage 1 of its proposed venture with the
CSIRO to manufacture magnesium sheet metal using CSIRO's world
leading twin roll casting technology
MIL's Directors remain committed to becoming a major global force in
the magnesium industry by building on the MIL's technological edge
arising from use of the Dow process technology. MIL intends to
construct the SAMAG smelter in two modules to a final capacity of
84,000 tpa of magnesium metal, over a five-year period after
Financial Close.
The Major Capital Raising to fund the construction of the first
Module of the SAMAG smelter, is anticipated to proceed from the third
quarter of this year. The actual date will depend on the state of the
equity market and progress with cornerstone investors.
MIL recently announced the signing of a Term Sheet with the CSIRO to
form a venture to commercialise the CSIRO's highly innovative,
magnesium sheet manufacturing technology. Magnesium sheet metal is a
product which currently has a restricted supply base and is
relatively expensive to produce. The CSIRO's new twin roll casting
("TRC") technology allows direct casting of molten magnesium into
sheet products which have outstanding properties and are likely to
cost significantly less than current magnesium sheet metal
alternatives. MIL's Directors believe that the immediate market for
the venture's products will be in the electronics area such as
laptops, mobile phones and other products. Interest has already been
received from a number of potential customers. With further
development of the TRC technology, numerous transport industry uses
for sheet metal products are also expected to be developed
The Directors believe this Venture is a very exciting opportunity for
MIL because:
* it is consistent with the corporate vision of investing in
businesses which involve value-added uses of magnesium;
* the venture is intended to make MIL a profitable manufacturing
company in its own right within a relatively short period of time,
with potential to generate positive cashflow before the SAMAG smelter
is commissioned;
* MIL believes that by starting now, it can grow the market for
magnesium sheet metal products so that the venture's products will
consume a considerable annual volume of magnesium by the latter part
of this decade when the SAMAG smelter is expected to be in full
production; and very importantly, MIL values the collaboration with
the CSIRO most highly and will look for other opportunities to
commercialise the CSIRO's technologies in the light metals area.
Key dates for the Entitlements Issue are as follows:
Date of the Prospectus 15 May 2003
Shares quoted ex-Entitlement 20 May 2003
Record Date for determining Entitlements 26 May 2003
Last day for despatch of Prospectus 29 May 2003
Last day for accepting offer of B Shares 23 June 2003
Allotment and issue of B Shares by no later than 14 July 2003
MIL expects further significant progress in the near term, including:
* announcements of cornerstone investors in the SAMAG Project;
* the results of the submission for assistance to the Federal
Government;
* news on a by-product sales agreement;
* finalisation of a fixed price for the engineering, procurement and
construction Module 1 of the smelter;
* completion of the Shareholder's Agreement with the CSIRO in respect
of the sheet metal manufacturing venture; and
* progress towards sales agreements with consumers of magnesium sheet
metal.
The Directors believe that the company is at a very exciting stage
and are highly supportive of the issue.
For further information contact:
Gordon Galt
MANAGING DIRECTOR
- Forums
- ASX - By Stock
- 1 for 5. 6 to 1 or half dozen the other
1 for 5. 6 to 1 or half dozen the other
- There are more pages in this discussion • 7 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)