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Nyrstar raises US$118.5 million

Global multi-metals business Nyrstar (BB:NYR) has raised €100 million (US$118.5 million) through a private placement as it looks to restart the Myra Falls copper-zinc-lead mine in British Columbia, Canada, and redevelop the Port Pirie zinc-lead smelter in Australia.
Nyrstar raises US$118.5 million Nyrstar raises US$118.5 million Nyrstar raises US$118.5 million Nyrstar raises US$118.5 million Nyrstar raises US$118.5 million

€30 million of the proceeds will go towards restarting the Myra Falls mine

Staff reporter

It placed 15.4 million new shares with institutional investors at €6.50 per share, with the new shares representing 16.4% of the number of outstanding shares before the transaction.
 
The deal is supposed to close on November 17 when Nyrstar shares will total 109 million. 
 
Of the total proceeds, €30 million will be used to restart Myra Falls in British Columbia, which was suspended in October 2015.
 
The remainder will fund the €70 million capital investment required to finish the redevelopment of Port Pirie in South Australia, which is being ramped up and should result in "a substantial earnings uplift from 2018 onwards".
 
The redevelopment includes replacing the old sinter plant with an oxygen enriched bath smelting furnace, replacing the old sulphuric acid plant with a new plant with greater capacity and upgrading technology at the smelter.