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John Sisay raises US$20 million for SRL

April 15, 2016 

Following the announcement of the 2015 annual results, CEO of Sierra Rutile Ltd., John Sisay has raised US$20 million from the London capital market to secure the company’s balance sheet, according to an announcement made in London on Thursday.

According to Dow Jones Institutional News, Sierra Rutile’s US$20 million share placing was oversubscribed and the net proceeds will now be used to increase production from its dry-mining operations. The capital raised secures the future of the company and its employees for the long term.

According to reports, the company issued 70 million shares with both new and existing institutional shareholders at a price of 20 pence a share, resulting in gross proceeds of 14 million pounds (US$20 million). The share placing represents 11.8% of the enlarged share capital and a 10.1% discount to the closing mid-market, five-day volume weighted average share price.

Proactive Investors News reported that the Sierra Leone-focused minerals sands group is switching emphasis from a dredging operation to land-based  mining, with a second dry mine (at Gangama) set to be commissioned in June this year. This may be followed by further bolt-on expansions at Gangama and the existing Lanti dry mine.

The company’s production for 2016 is forecast to be between 120,000 and 135,000 tonnes at a cash cost of between $540 per ton and $590 per ton as the expansion ramps up production.

John Sisay, chief executive, said: “We are pleased with the strong investor support for our oversubscribed share placing.”

“In addition to the new money raised today, Sierra Rutile has a US$20 million working capital facility and a US$15 million standby facility with Nedbank, both of which run until May 2017,” Proactive Investors News reported.

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