MSC 0.00% 6.4¢ minerals corporation limited

good write-up in miningnews

  1. 86 Posts.
    MinsCorp to raise $30 million for share, note buyback
    Thursday, May 01, 2003

    QUEENSLAND kaolin producer Minerals Corp is moving to reduce the 246 million shares on its register with a new $30 million debenture issue to fund a buyback of ordinary shares and converting notes.

    The announcement has been welcomed by the market, which pushed its share price up 4% to close at 13.5c.

    MinsCorp said it was taking advantage of the low stockmarket valuation to offer a share buyback at 20c per share, as well as a buyback of its converting notes at $1.00 per note against the market price of 75c.

    Chairman Vic Alexander said the company had deliberately funded its Skardon River kaolin project on Cape York Peninsula by equity during the high-risk phase.

    "Now that the company is very confident on the future success of its kaolin business it is timely to buyback equity and increase the currently very low company debt ratio," Alexander said.

    "The low prices prevailing in the stock markets adds further incentive for this course of action."

    Alexander said MinsCorp was shipping kaolin products to domestic markets and bulk exports would commence next month to a number of destinations in Asia and Europe after it received attractive shipping rates.

    MinsCorp will offer a $1.00 debenture, carrying 10.5%pa interest paid quarterly, for five ordinary shares, and one debenture for every $1.00 converting note.

    The debenture issue remains subject to shareholder
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