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Australian copper ore company 29Metals has launched an A$151m ($97.4m) entitlement offer to support its copper projects and de-risk its balance sheet.

The accelerated non-renounceable entitlement offer of one fully paid ordinary shares for every 2.2 29Metals ordinary shares involves the issuance of around 219.1 million new shares, accounting for nearly 45.5% of the company’s issued capital.

EMR Capital Investors, the largest shareholder of the company with a 44.85% stake, is supporting the equity raise. It has committed to invest up to A$67.8m ($43.72m).

29Metals plans to conduct the equity raise at an offer price of A$0.69 per share ($0.44). This marks a 5.6% discount to the theoretical ex-rights price (TERP) of A$0.73 ($0.47) and an 8% discount to the stock close of A$0.75 ($0.48) on 29 August.

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With the equity raise, the company intends to fund its Capricorn Copper Recovery Plan and Golden Grove capital projects, including the construction of the proposed life-of-mine tailings storage and conversion of the paste plant to accept wet tailings.

Commenting on the company’s future course of action, 29Metals managing director and CEO Peter Albert said: “We are pleased that the Capricorn Copper Recovery Plan continues to progress, with the restart of operations at Mammoth and Greenstone earlier this month a key milestone for the company, with dewatering and rehabilitation expected to enable targeted full recovery of operations by mid-H1 2024.

“In the near term, the company is focused on current water reduction measures as well as addressing tailings storage solutions to support operations. In the medium term, the company intends to deliver on the tremendous exploration potential at existing orebodies, Mammoth and Esperanza South, as well as the approximately 1,900km² tenement area surrounding the mine site.”