Singapore 20/09/2016 - Chinalco Yunnan Copper Resources (CYCR), which has been assessing acquisition opportunities across copper, gold and other base metals, is seeking additional funds of A$1.77 million ($1.3 million) because it expects "an opportunity" in the next few months, it said.
The Australia-listed subsidiary of Aluminium Corporation of China (Chinalco) has announced a non-renounceable entitlement offer where eligible shareholders are offered the right to acquire additional fully paid ordinary shares in the company at $0.006 per new share to raise around $1.77 million, according to its prospectus. The offer closes on October 14.
CYCR continues to focus on the acquisition of project interests in Africa, particularly in the Democratic Republic of Congo, but has also more recently been examining Australia-based gold exploration and mining projects, it said on Tuesday.
"While [the company] does not have any particular transactions to disclose, management considers it likely that an opportunity will be secured over the next few months, having regard to the number of opportunities have been and continue to be considered," it added.
The funds raised in the offer will be used in due diligence in respect of opportunities the company is looking to pursue and its related expenses and project-related acquisition costs and fees, it noted.
Earlier in July, CYCR said its assessment and interest in project opportunities were not limited to copper projects but also included gold and other base metals.
"[The company's] board continues to hold a view that the current difficult resources market conditions are ideal for business development and acquisition activities," it said at that time.
The company is involved in copper exploration in Australia and expects to commission a 10,000-tonne-per-year SX-EW (solvent extraction-electrowinning) copper smelter in the DRC by the end of 2017.
(Editing by Mark Shaw)