Successful completion of Rights Issue

NOT FOR PUBLICATION OR DISTRIBUTION IN OR INTO THE UNITED STATES OR ANY OTHER JURISDICTION WHERE SUCH PUBLICATION OR DISTRIBUTION MIGHT BE UNLAWFUL*

MMG is pleased to announce the results of its Rights Issue of 1 new share for every 2 shares held for an offer price of HK$1.50 per share, launched on 1 November 2016. 

The offer was heavily oversubscribed with valid applications for 97.38% (2.58 billion) of the Rights Shares available and an additional 14.59 billion valid applications for excess Rights Shares.  Including excess applications, the offer was approximately 6.5 times oversubscribed.

Chief Financial Officer, Ross Carroll said that the Rights Issue had two primary objectives and that strong appetite for MMG equity was a great vote of confidence in MMG’s future outlook. 

“The Rights Issue was aimed at strengthening our balance sheet and improving share trading liquidity.  With the rapid ramp up of Las Bambas and the ongoing development of the Dugald River project, this was an important capital injection to fund our growth pipeline. The high level of acceptances and excess applications shows great support from our shareholders,” said Mr Carroll.

Chief Executive Officer, Andrew Michelmore said that the success of the Rights Issue gives management and the Board great confidence but that the focus remains on operational excellence and delivery.

“We value the ongoing support of our major shareholder, China Minmetals, as well as our institutional and retail shareholder base and we are committed to delivering for these investors together with all our stakeholders.  The recent rally in commodity prices is welcomed, but 2017 is likely to present ongoing market challenges. We remain resolute in our focus on safety, continuous improvement and cost control,” said Mr Michelmore.

The Rights Issue raised approximately US$500m after transaction costs and will result in 2,645,034,944 million new shares on issue. The size of the Rights Issue and significant investor demand demonstrates the strength of MMG’s financing capacity and access to public capital markets.

The fully-paid Rights Shares and CDIs will begin trading on the Hong Kong Stock Exchange and Australian Securities Exchange on 16 December 2016.

* This media release must not be released, published or distributed, directly or indirectly, in or into the United States, Canada, Japan, the United Kingdom, the People’s Republic of China, Ireland, Italy, Norway, Singapore, South Africa, Switzerland and the British Virgin Islands or any other jurisdictions where such release or distribution might be unlawful (the “Restricted Territories”).
This media release does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the other Restricted Territories. The securities mentioned herein have not been, and will not be, registered under the United States Securities Act of 1933 (the “US Securities Act”) or the applicable securities laws of the other Restricted Territories, and may not be offered or sold in the United States or the other Restricted Territories unless registered under the US Securities Act or the applicable securities laws or pursuant to an exemption from, or in a transaction not subject to, registration. The Company has no intention to register under the US Securities Act or the applicable securities laws in any of the other Restricted Territories any portion of the Rights Issue or any of the securities referred to herein or to conduct a public offering of securities in the United States.