Danderyd July 10, 2019
Copperstone Resources AB (publ) (“Copperstone” or “the Company”) improves the financial position by SEK 24 million (before transaction costs) in connection with the now completed rights issue.
The outcome of the rights issue
- 30,355,325 new shares, equivalent to approximately 58 per cent of the rights issue, were subscribed for with preferential rights,
- 21,976,696 new shares, equivalent to approximately 42 per cent of the rights issue, were subscribed for without preferential rights (of which 6.8 MSEK was signed by investors also in underwriting capacity.)
The company receives 16.5 MSEK in cash and 7.5 MSEK is set-off of debt. In total, the Company therefore improves its financial position by approx. SEK 24 million before cash transaction costs of approximately SEK 1.3 million. In order to facilitate optimal project development, the Boards of Sunstone and Copperstone have agreed upon the following amendment to the amended Share Sale and Purchase Agreement: Copperstone will to Sunstone amortize 10 MSEK from the rights issue proceeds; Sunstone converts approx. 5.7 MSEK in the rights issue and the remaining debt to Sunstone is now only 5 MSEK (not including cash triggered by the milestone of an approved environmental permit at Viscaria).
The rights issue has increased the Company’s share capital with SEK 5,233,202.1. The number of shares has increased by 52,332,021 new shares of B-series. After the rights issue, the total number of shares and votes in the Company is 470,988,191. The dilution among shareholders not participating in the rights issue was 11%.
Trade in paid subscribed shares and delivery of new shares
Trade in paid subscribed shares will take place on Nasdaq First North until the Swedish Company Registration Office has registered the rights issue. This registration is expected to take place during July, 2019. Delivery of new shares will take place as soon as possible after the issue has been registered. The newly issued shares will then be admitted for trade on Nasdaq First North.
“New Copperstone has provided our shareholders a unique opportunity to take part in our near term growth plans. With fourteen times more copper (of better class) than at our latest successful rights issue at 0.41 SEK, we are grateful of the high participation level among the existing shareholders in a tough small cap market, and that Sunstone converts a significant amount of debt to additional equity. When the work permit application is granted, we will mobilize at Viscaria. Next, Copperstone is looking forward to introduce our great company to qualified international investors.”
This press release contains insider information which Copperstone Resources AB (publ) is obliged to publish according to the EU market abuse regulation (MAR). This information was submitted for publication, through the above contact person’s agency, 15:05 CEST on July 10, 2019.
Copperstone is a public company trading as COPP B on NASDAQ First North (Stockholm). The Certified Adviser is Augment Partners AB, email@example.com, +46 8 505 65 172. The Company is focused on base and precious metal exploration in the vicinity of the internationally recognized mining districts of Kiruna and the Skellefte-field in northern Sweden. In addition, the Company also has interests in the Bergslagen mining region, in central Sweden.