Stunning news this morning given the context of the past 2 weeks bashing by the downrampers following the recent postponed capital raising. Seemingly on the backfoot only days ago Wayne has just hit one out of the park! Well done.
Not only once more a major investor SinoSteel backs up earlier preference for CDU shares in lieu of cash @ $4.50, but they now do so at a premiumn to their last one ($3.90) and the recent proposed cap raising @$4.30
Another major piece of infrastructure ticked off with the power plant now confirmed, and more cash for the process plant construction.
Of course the downrampers will only see this as bad news!
"CUDECO ENTERS INTO BINDING CONTRACT WITH SINOSTEEL EQUIPMENT AND ENGINEERING CO LTD FOR PLACEMENT OF 7.6M FULLY PAID CUDECO SHARES @ $4.50c PER SHARE
CuDeco Ltd is pleased to announce that we have entered into an agreement with Sinosteel Equipment and Engineering Co. Ltd for accepting a placement of 7.6m ordinary fully paid shares @ $4.50 per share for $34.2m. The placement is in lieu of cash payments for equipment being supplied by Sinosteel. The equipment includes the entire 22Megawatt Power Station manufactured by U.S. Cummins Power, to provide the high voltage power station for the Rocklands Copper Project. The supply agreement includes the complete installation, commissioning on site, including 12 months on site support. The balance of the placement is for contribution for erection and construction of the mineral process plant. The Directors elected that this share in lieu of cash option, was a better option than the recent placement that was withdrawn at $4.30 per share.
The agreement with Sinosteel is binding, but subject to FIRB approvals which is expected to be approved by the end of 2012."
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