Ann: SFR: Media Speculation - MOD Resources Limited, page-23

Street TalkTerms out for MOD Resources raising, adviser appointedBy Sarah Thompson and Anthony Macdonald21 Jan 2019 — 1:34 PM

In-play copper junior MOD Resources has kicked off a $15.2 million equity raising via Perth-based broker Ashanti Capital.The company is seeking to raise $10 million in a placement of new shares at 30¢ each and another $5.2 million in an underwritten rights issue at 24¢, according to a term sheet sent to potential investors.

Ashanti Capital was lead manager and underwriter, the term sheet said, and Canaccord has been appointed co-manager.The fact MOD Resources is in play - and AustralianSuper's interest - is expected to see its raising strongly bid.  

Funds raised were to advance plans at its T3 Copper Project, including completing a feasibility study, purchasing land and designing a processing plant.Fund manager sources said heavyweight investor AustralianSuper was believed to have lent its significant balance sheet to both the placement and rights issue.

Of course the raising comes as MOD has attracted strategic interest from listed copper play Sandfire Resources, as Street Talk revealed on Monday morning, and confirmed by Sandfire Resources in an announcement to the market.The fact MOD Resources is in play - and AustralianSuper's interest - is expected to see its raising strongly bid.It is understood MOD has also appointed Perth-based banker Tim Day's Sternship Advisers with respect to the approach and to help consider other strategic opportunities, such as private equity funding, discussions with large miners and potential off-takers.MOD is understood to have been in the sights of at least one private equity tyrekicker prior to Sandfire's approach.Boutique Sternship's appointment comes after it advised Silver Lake on the Doray Minerals and, interestingly, advised Talisman with respect to its transaction with Sandfire.