We have EMED Mining as a Trading Buy, the position being entered at 9p on the 24 Aug. The stock has been covered extensively in our magazine and on the blog (tabs to the right) with the most recent commentary from our contributor Zak Mir who suggested the stock might be ripe for a squeeze higher - http://www.spreadbetmagazine.com/blog/2012/10/3/new-regular-blog-feature-by-zak-mir-starting-with-2-big-stoc.html.
Prescient analysis by Zak with the shares up 20% at the open today on the announcement of a funding package for the development of their copper mine in Southern Spain that was purchased from Rio Tinto.
The terms of the deal involve the issuing of $15m of shares at a price of 14.8p - a near 50% premium to yesterdays share price (there’s a novelty in the current climate of heavily discounted placings and rights) and an additional loan facility of $35m. The company will, in exchange, grant to its partner in the project - Red Kite- the “off take” rights of upto 27% of the mined copper.
Here are the highlights -
The Subscription will be in two separate tranches with 50,000,000 Ordinary Shares being subscribed for in the first tranche and 13,829,787 in the second tranche. Both tranches will be conditional upon the approval by the Toronto Stock Exchange (“TSX”) and admission to trading on AIM of the relevant tranche (“Admission”). The subscription for the Second Tranche Shares (as defined below) is also conditional upon approval by the shareholders of the Company (the “Shareholders”) at the extraordinary general meeting of the Company to be held in December 2012 (the “EGM”). Notice convening the EGM will be despatched by the Company to Shareholders shortly.
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