Maaden spends SAR 5.3 bln of rights issue proceeds

Saudi Arabian Mining Co. (Maaden) used SAR 5.29 billion from the proceeds of its rights issue by Feb. 1, 2018, the company said in a statement to Tadawul on Tuesday.  

The balance amounted to SAR 308 million.  

The subscription period for the rights issue ran from Nov. 18 to Dec. 2, 2014, with received gross proceeds amounting to SAR 5.6 billion.

Maaden spent SAR 4.75 billion of proceeds as equity contribution to Maaden Waad Al Shamal Phosphate Co.

The total amount to be used from the offering proceeds to fund the equity investment in Maaden Waad Al Shamal Phosphate Company as per the prospectus is SAR 5.06 billion. 

“The remaining amount of SAR 312 million will be used to continue to finance the company’s equity investment in the project,” Maaden said.

Meanwhile, a total of SAR 509 million went towards repaying amounts then outstanding under Maaden’s redrawable Murabaha finance facility. The facility had been temporarily used to fund costs incurred by Maaden Bauxite and Alumina Company.

Another SAR 7 million was spent to fund the balance of the mining giant’s equity contribution to the project.

The bauxite and alumina plant started commercial operations in October 2016, the statement added.

The rights issue offering expenses stood at SAR 23.9 million, compared to SAR 21 million in the prospectus due to higher than estimated advisory service fees.