MMG plans rights issue for debt repayment

The mining company is seeking $520 million from existing shareholders before a chunky portion of its debt matures in June next year.
MMG's Las Bambas copper project in Cotabambas, Peru
MMG's Las Bambas copper project in Cotabambas, Peru

Sino-Australian mining company MMG is tapping shareholders for cash with a HK$4 billion $520 million rights issue to meet short-term debt obligations while it waits for its biggest acquisition to deliver profits.

Funds raised will go to help the miner, which reported losses of $1.1 billion in the first half of this financial year, meet some $824.6 million of debt due in June next year. MMG needs cash in the short term as its big-money investment in Peru's Las Bambas copper mine is only beginning to generate returns.

MMG, the Hong Kong-listed subsidiary of state-owned miner China Minmetals Corporation, said on...

¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team (2-10 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at subscriptions@financeasia.com, or +(852) 2122 5222