Drilling services company Swick Mining will raise $14.5 million through a placement and rights issue to help fund its expansion in North America, new drilling rigs, boost its working capital and shore up its balance sheet.
The company will place 22.8 million shares at 36 cents each with institutional and sophisticated investors of Euroz Securities to raise $8.2 million.
Swick said the placement, which closed oversubscribed, was expected to be completed by the end of the month.
The company would also offer 17.5 million shares as part of a one-for-10 rights issue to raise $6.3 million.
New shares in the rights issue, which is fully underwritten by Euroz, will also be priced at 36 cents.
Directors of the company have committed to taking up $1.1 million in the rights issue.
Swick shares last traded for 43 cents.
STUART McKINNON
