Baker & McKenzie Advises Rex Minerals on $42 Million Equity Raising
Deal Announcement
November 25, 2009
Melbourne, Australia, 25 November 2009 – Baker & McKenzie has advised Rex Minerals Limited (ASX: RXM) on its successful A$42 million equity raising. The capital raising, comprising a non-renounceable accelerated entitlement offer, was fully underwritten and the new shares were issued on a 3 for 10 basis, at an offer price of A$1.70 per share. The offer was fully underwritten by E.L. & C. Baillieu Stockbroking Ltd through Stephen Macaw.
Rex Minerals is an Australian minerals exploration company with recent copper discoveries in South Australia and New South Wales. The capital raising was a significant transaction for Rex Minerals, providing further equity capital to support the strong growth of its business. Rex Minerals intends to use the funds to continue its drilling process at the Hillside Copper Project in South Australia.
The Baker & McKenzie team was led by Richard Lustig, Melbourne based corporate partner, supported by senior associate, Riccardo Troiano.
Commenting on the deal, Richard Lustig said, "The capital raising was successful because of the strong support shown by both existing and new investors despite recent volatile market conditions. We are happy to once again be advising Rex Minerals in its capital raising activities. We advised Rex Minerals on its IPO in 2007 at a 25 cent share price and we are very pleased to see the company grow into a substantial Australian minerals exploration company at a much higher value in such a short time."
Richard Lustig further said "Baker & McKenzie has been involved in a number of capital raisings for resources companies in recent times. Each one has its own interesting aspects. This offer was slightly unusual for an offer of this size in that it involved an accelerated institutional component which provided the company with certainty as to 50% of the raising before embarking on the retail component of the offer. Rex Minerals obtained waivers from ASX to permit the offer to be conducted on an accelerated basis."