CUDECO SWAPS SHARES FOR SERVICES

CUDECO SWAPS SHARES FOR SERVICES

CUDECO (ASX: CDU) has entered an agreement to exchange $34.2 million in shares for services from Sinosteel Equipment and Engineering.

The placement of 7.6 million ordinary shares at $4.50 per unit is in lieu of cash payments for equipment from Sinosteel, says CDU director Wayne McCrae (pictured).

“The equipment includes the entire 22Megawatt Power Station manufactured by U.S. company Cummins Power, to provide the high voltage power station for the Rocklands Copper Project,” says McCrae in a statement to the ASX today.

“The supply agreement includes the complete installation, commissioning on site, including 12 months on site support.”

The remainder of the placement is for the erection and construction of the mineral process plant.

The market reacted positively to the announcement today, with CDU shares closing 6.19 per cent up at $4.630.

CuDeco recently cancelled a $30 million capital-raising venture and decided upon the share placement with Sinosteel instead.

“The Directors elected that this share in lieu of cash option, was a better option than the recent placement that was withdrawn at $4.30 per share,” says McCrae.

The agreement with Sinosteel is binding, but subject to the Foreign Investment Review Board approval process, which is expected to be completed by the end of this year.

Help us deliver quality journalism to you.
As a free and independent news site providing daily updates
during a period of unprecedented challenges for businesses everywhere
we call on your support

Facing the latest impacts of cyber-crime: cyber insurance premiums increase for businesses
Partner Content
As Australian businesses are forced to adapt to a new normal yet again, a different typ...
Aon
Advertisement

Related Stories

Queensland reinstates border restrictions with Lismore

Queensland reinstates border restrictions with Lismore

After the New South Wales Government sent the cities of Lismore and...

Can Queensland cash in on the NRL finals? It’s all about ‘event leveraging’

Can Queensland cash in on the NRL finals? It’s all about ‘event leveraging’

Queensland's love of rugby league, and the fact the state isn...

QLD businesses urged to line up early for 2032 Olympic economic boom

QLD businesses urged to line up early for 2032 Olympic economic boom

Queensland businesses are being encouraged to collaborate early wit...

Space Machines Company teams up with Leaf Space for 2022 satellite launch

Space Machines Company teams up with Leaf Space for 2022 satellite launch

Sydney-based startup Space Machines Company is a step closer t...