SMM Metals Reports

Guangdong's Rising Nonferrous to Raise $8.3 Mln via Private Placement for Consolidation

SHANGHAI, Jan. 15 (SMM) – Guangdong’s Rising Nonferrous Metals Co. plans to raise 50 million yuan ($8.3 million) via private placement to buy into local rare earth and tungsten producers as part of the government-led bid to consolidate the industries.
Rising Nonferrous will issue no more than 13.8 million shares to no more than ten specific investors including its parent Guangdong Rising Assets Management Co., who will subscribe to 30% of the shares issued, the company told Shanghai Stock Exchange today.
Money raised will be mainly used for purchases of equity stakes in two local rare earth producers and one tungsten miner, it said in an exchange filing.
Purchases of the rare earth producers are set to reduce horizontal competition and related transactions for Rising Nonferrous while the tungsten miner purchase is expected to help the company gain from the growing market of hard alloys, it said.
 

source:http://www.metal.com/newscontent/56707_guangdongs-rising-nonferrous-to-raise-8.3-mln-via-private-placement-for-consolidation

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